Running through standard check-lists we can see that:
1) Price has successfully broken out of the Kumo to the downside following a period of consolidation within the Kumo itself and having been capped within an increasingly narrow pattern characterised by small daily candles (i.e low and general indecision). The most recent price action and however from the Kumo Top to the Kumo floor was stronger ( in three days most of April’s range) helping to penetrate through the strong resistance of a flat Kumo floor which had held as support for the past month. This is a very .
2) We can see also see that Tenken-Sen had a Kijun-Sen cross previously that was invalidated by Kijun-Sen being flat (i.e. no trend) and also Chikou-Span and future Kumo looking . This led to a false Kumo-Breakout above the Kumo before price retreated aggressively into the cloud only to cross again (this time ) within the Kumo (a medium-strength cross). Importantly, Kijun-Sen has woken-up and is angling down in support of the move and this tells us that price is moving away from its equilibrium (starting to trend). This is a further signal.
3) Future Kumo is and gaining depth (i.e. getting thicker) and Chikou-Span has also successfully broken through the Kumo having already being positioned on the right side of price (beneath) to support a view. This is traditionally a major sign that the Kumo breakout has the legs to continue its path
4) One of the last hurdles for price was the psychological level of 1.3000 just south of the Kumo and this has also been successfully breached and now appears to be retesting from beneath as resistance. Should this hold as resistance we can realistically look to the next major as a potential target in the coming week or two.
5) We also have full validation from the higher time frame (weekly) which paints a similar picture and it is interesting to see that last week’s price action was a rejection of the weekly Kijun-Sen which suggests the trend will resume for the time being.
6) The caution is that price has already drifted far from the Kumo and the Kijun-Sen and will most likely retrace back to (at least) the Tenken-Sen before resuming its downward path. A brief retracement to the area close to the Tenken-Sen would offer the best low-risk entry for traders that missed the initial opportunity.