EURJPY Range Trading Strategy – Thin Flat Ichimoku Cloud-Technical Analysis | EURJPY Range Trading Strategy

With Euro and Japanese Yen both under pressure, a EURJPY range trading strategy seems like the way to go. Especially with the ever thinning, flat Ichimoku cloud forming on the Forex daily chart. Read on for a PCML approach to forex strategy development.Examine the current Euro Japanese Yen rate and access to our EUR JPY converter, charts, historical data, news, and more.

EURJPY Range Trading Strategy

Technical Analysis | EURJPY Range Trading Strategy. Daily Chart: The EURJPY pair confirmed above a very thin Ichimoku cloud

USD/JPY

USD/JPY has been called the trend that has killed a few hedge funds

Let’s look at the four-hour chart. Tenkan-sen line has crossed Kijun-sen from below, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is crossing the price chart from below, current cloud is descending. The instrument has entered the cloud. The closest support level is the lower border of the cloud (119.53). The closest resistance level is the lower border of the cloud (119.92).

Let’s look at the four-hour chart. Tenkan-sen line has crossed Kijun-sen from below, the red line is directed upwards, while the blue one remains horizontal. Confirmative line Chikou Span is crossing the price chart from below, current cloud is descending. The instrument has entered the cloud. The closest support level is the lower border of the cloud (119.53). The closest resistance level is the lower border of the cloud (119.92).
USD/JPY

USD/JPY has been called the trend that has killed a few hedge funds

On the daily chart Tenkan-sen line is below Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is below the price chart, current cloud has reversed from ascending to descending. The instrument has been corrected to the Tenkan-sen line. The closest support level is Tenkan-sen line (119.69). The closest resistance level is Kijun-sen line (120.75).

Recommendation

On the four-hour chart the instrument is trading within the cloud. On the daily chart we can see a correction of the downward movement. It is recommended to open short positions at current price with the target at the level of previous minimum of Chikou Span line (118.41) and Stop Loss at the lower border of the cloud (120.20).

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 119.69
Take Profit 118.41
Stop Loss 120.20
Key Levels 118.41,119.69,120.20
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