CAD/JPY: Downtrend Signaled With Ichimoku Indicators
Yan Andell | May 07, 2024 02:20PM ET
In the 4-Hour chart of CAD/JPY, the Tenkan-sen line is below the Kijun-sen, with the red line pointing upward while the blue line remains horizontal. The Chikou Span indicator is below the price chart, and the cloud is preparing to switch from ascending to descending. The instrument has pulled back to the Tenkan-sen line, with likely support at the previous low of the Chikou Span at 111.640. The Kijun-sen line represents the next resistance level at 113.138.
The Tenkan-sen line is above the Kijun-sen, with both lines remaining horizontal. The Chikou Span is above the price chart, while the cloud remains ascending. The pair is trading below the Tenkan-sen and Kijun-sen lines, continuing the downtrend. Likely support is at the previous low of the Chikou Span line at 111.623, while the Kijun-sen line at 113.156 represents the next resistance.
Both charts show a continuous downtrend. It's recommended to open short positions at the current price, targeting the previous low of the Chikou Span at 111.640 and setting a Stop Loss at the Kijun-sen line at 113.138.
Scenario:
Recommendation: SELL
Entry Point: 112.642
Take Profit: 111.640
Stop Loss: 113.138
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