Per inchimoku cloud indicator on USDJPY 1M chart. Yes, this is not for trading, just for your knowledge of big picture, I believe that this pair will be continuing to be BEARISH for rest of 2016. Here are my several reasons/opinions why:
1) 1st look at RSI on bottom of chart--- it has went below 50 level which this pair has not done since 2013.
2) Averages of both of USDJPY 1 M major support area lows in 1999 & 2005 is 101.470-- price now is 109.593 & has been dropping since late last year and continuing this year, so far. I believe will go to around 101.500 at least level.
3) Ichimoku cloud indicator says: price action this month has retracted upwards, right above a support level.The EMA line 9 (light blue line) has turned corner & appears to be crossing EMA line 26 (purple line) soon. Cloud noted below PA, did a cloud twist or Kumo Twist in 6/15/15 foretell that Bulls would be losing control & Bears would take over.
4) Noted EMA 50 (black) & EMA 200 (gold) need to be watched closely to see if 200 ema crosses over 50 ema, this would be MAJOR sign of pair continuing downwards. Another name for this is death cross, which means BEAR time.
Yes, big picture is bearish, BUT for trading purposes you would have to consult time frame of your TRADE for what is going on short term for the USDJPY pair at a given time. Wishing all the best in trading- trade with TREND!!!
1) 1st look at RSI on bottom of chart--- it has went below 50 level which this pair has not done since 2013.
2) Averages of both of USDJPY 1 M major support area lows in 1999 & 2005 is 101.470-- price now is 109.593 & has been dropping since late last year and continuing this year, so far. I believe will go to around 101.500 at least level.
3) Ichimoku cloud indicator says: price action this month has retracted upwards, right above a support level.The EMA line 9 (light blue line) has turned corner & appears to be crossing EMA line 26 (purple line) soon. Cloud noted below PA, did a cloud twist or Kumo Twist in 6/15/15 foretell that Bulls would be losing control & Bears would take over.
4) Noted EMA 50 (black) & EMA 200 (gold) need to be watched closely to see if 200 ema crosses over 50 ema, this would be MAJOR sign of pair continuing downwards. Another name for this is death cross, which means BEAR time.
Yes, big picture is bearish, BUT for trading purposes you would have to consult time frame of your TRADE for what is going on short term for the USDJPY pair at a given time. Wishing all the best in trading- trade with TREND!!!