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12 Dec 2013
Ichimoku readings hint Yen crosses at risk of further declines
FXstreet.com (Bali) - The Japanese Yen saw a strong bout of profit-taking during Wednesday, with heaviness on US stocks market inflicting further pain to those holding Yen shorts.
For the Asian session ahead, judging by the intraday ichimoku readings, the Nikkei daily futures chart shows an ugly pciture, with double topside failure at 15700 leading to a break of the Tenkan sen below 15400, now exposing 15000/15050 support ahead of Kijun sen at 14850.
From an intraday standpoint, the Nikkei 225 H4 chart saw price breaking below the cloud as Kijun flattens out and Tenkan sen shows a perfect 45º descending angle about to cross the Kijun. If one throws into the mix the tentative open space price is allowed to fall until next major support at 15050/15000, the conclusion is that technicals are not supportive of the Nikkei for the coming session, which translates into a potential stronger Yen.
Looking at the H1 chart, the Nikkei 225 presents a bearish picture in line with higher timeframes short term talking, with each rebound intraday having met sellers at the Kijun sen intersection, a communication that players are happy to temporarily commit to the bearish signs provided by ichimoku.
While intraday price action is telegraphing tentative evidence that the Yen sell-off may have run out of steam, at least for an extension of a short term correction, it is important to remind readers that such approach being long Yen still carries significant risks as the underlying bear trend remains very much alive, simply taking a much-needed breather.
For the Asian session ahead, judging by the intraday ichimoku readings, the Nikkei daily futures chart shows an ugly pciture, with double topside failure at 15700 leading to a break of the Tenkan sen below 15400, now exposing 15000/15050 support ahead of Kijun sen at 14850.
From an intraday standpoint, the Nikkei 225 H4 chart saw price breaking below the cloud as Kijun flattens out and Tenkan sen shows a perfect 45º descending angle about to cross the Kijun. If one throws into the mix the tentative open space price is allowed to fall until next major support at 15050/15000, the conclusion is that technicals are not supportive of the Nikkei for the coming session, which translates into a potential stronger Yen.
Looking at the H1 chart, the Nikkei 225 presents a bearish picture in line with higher timeframes short term talking, with each rebound intraday having met sellers at the Kijun sen intersection, a communication that players are happy to temporarily commit to the bearish signs provided by ichimoku.
While intraday price action is telegraphing tentative evidence that the Yen sell-off may have run out of steam, at least for an extension of a short term correction, it is important to remind readers that such approach being long Yen still carries significant risks as the underlying bear trend remains very much alive, simply taking a much-needed breather.