Analysing Cable using Kinko-Hyo I believe we are in the midst of a push on the daily time frames. Here is how I see things playing out:
I always look to the higher time-frame for guidance (in this case weekly – please press the 1W button to follow along). Here we are at a pivotal moment for influencing the . Broadly speaking I believe we are turning for these reasons:
On the weekly chart, price is above the Kumo, and Chikou-Span has just broken out of the Kumo (not yet convincingly so needs monitoring). Tenken-Sen is above Kijun-Sun having formed a weak-form cross recently and the developing flat-top Kumo (with decent depth) should represent strong support for the pair in the coming weeks. We can also see a possible retracement to the Kumo-Top forming and whether this holds may depend on Chikou-Span holding above the Kumo 26 periods back. Should this be the case a potential bounce somewhere in the zone between 1.601 and 1.603 looks like a great entry point. We can also see that the Kumo future is very close to twisting positive which could act as a further confirmation and give us greater confidence that the Kumo break will hold.
Dropping down to the we can see that conditions here are also positive. Price is above the Kumo which is a sign; Tenken-Sen is above Kijun-Sen which is a sign; Chikou-Span is above price 26 periods back and with ‘open air’. Future Kumo is and growing in depth which again is .
We are however seeing a retracement unfolding and the question will be where this concludes. Kijun-Sen has flattened in the last few days suggesting price has found temporary equilibrium (when this occurs we ca expect price to snap back to the line) With our weekly hats on, the zone we identified between 1.601 and 1.603 looks a safe bet, but the momentum of the pair may not take us that far down. As if by magic, the 1.601 price level would represent a 38.2% Fibonnaci retracement and (at the time of writing) the candle of today is a possible .
Depending on which area the price actually holds we can target the Fibonacci extensions of 1.382 and 1.682% which is a price zone towards 1.6800 to 1.7000, but this a long-term zone and the shorter term target would be the recent top. Should price surpasses the recent high stops can be moved up to lock in some profits at which point we can analyse again price action relative to the components