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TECHNICAL ANALYSIS


FX


down trend will be confi rmed if the price can break out the Daily Kumo on the downside. Cur rently the price is ver y f ar from the Daily Kijun Sen and the Kumo has a flat top, so a bearish cor re ction is ver y possible in the near futur e.


USDJPY Retrospect Figure 9: USDCHF Daily


USDCHF Prospect While


the Weekly and Monthly USDCHF char t s are


s t ill clearly bearish, the Da ily chart turned into bul lish in the first part of September. The cont inuation of the


On the Monthly USDJPY char t


the bearish trend


cont inued in the la st 3 months too. The price and the Chikou Span were below the other Ichimoku component s and the Kumo future wa s clearly Kumo


bearish be came too. thicker


The and


Figure 10: USDJPY Monthly


thicker, which is the sign of a heal thy and strong trend. On the Weekly chart July star ted with a strong bearish Tenkan- Sen/Kijun-Sen crossover and it was a fully confi rmed sell entry signal as all other Ichimoku components were clearly bearish too. Af ter the crossover, the price marched down more than 300 pips til l the middle of September. On the Daily USDJPY chart the picture was clearly bearish too with a strong bearish Tenkan- Sen/Kijun-Sen crossover signal on the 20th of July.


Figure 11: USDJPY Weekly


USDJPY Prospect Al l higher time frames are stil l


FX TRADER MAGAZINE October - December 2011 67


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