Ichimoku Trading Signals – Tenkan Supports on Dips – June 19th
The beast (otherwise known as the GBPJPY pair) has gained 10 out of the last 12 days communicating the bounce off the lows has some decent buying behind it. What is interesting to me from an Ichimoku perspective is how 3 of the last 8 days the dips touched to the pip the daily tenkan line, finding support there and closing higher off each rejection. This tells me the pair is underpinned on the short term, and the tenkan is confirming this further by turning upward, suggesting short term momentum is also behind the pair.
We expect this bullishness to continue, either till the end of the week, or end of June where we expect the pair will run into the Kumo. Should this meeting with the Kumo happen around 126.45 which is also a role-reversal level, then we expect the pair to likely reject here, making a second attempt at the downside. If this unfolds, we will watch for a tenkan-kijun cross to downside for rejoining the trend. Short term bulls meanwhile can take intraday dips down to the tenkan and take small longs there.
Medium term bulls will want to wait for a kumo break along with a chikou span crossing the price line before it can make an upside attack on the 131.75 swing highs from April.
For those of you wanting to learn how to trade the Ichimoku Cloud, along with lifetime access to the Ichimoku traders forum, using rule-based systems, make sure to check out my Ichimoku Course.
Global Market Commentary:
Global stocks climbed along with the Euro supported by optimism the CBs of the world will offer economic assistance (read printing money and bank bailouts) to stave of the EZ debt crisis. Although this has completely failed just recently (Spanish Bailout), investors bought the story. This combined with an expectation the FED will act and the markets gained today, despite the German ZEW posting its largest drop since 1998 and Spanish 10yr yields still hovering around the 7% red zone.
Regardless, the Dow added 95pts or .75% while Gold fell for the first time in over a week dropping down to $1619. The S&P also gained strongly on the day adding 13pts or 1.19% approaching key resistance at 1358.
Keep in mind the FOMC rate decision is tomorrow.
Upcoming Economic Announcements:
|AUD Conference Board Leading Index||00.00GMT||20.00EST|
|AUD Dwelling Starts||01.30GMT||21.30EST|
|EUR German Producer Prices (YoY)||06.00GMT||02.00EST|
|GBP Bank of England Minutes||08.30GMT||04.30EST|
|GBP Jobless Claims Change||08.30GMT||04.30EST|
|USD Federal Open Market Committee Rate Decision||16.30GMT||12.30EST|
|NZD Gross Domestic Product (YoY)||22.45GMT||18.45EST|
Make sure to check out my newest article on Improving Trader Psychology With Neuro-Feedback
Want More? My private members get all my trade ideas & market commentary up to 3x per week. Click here to become a member.
Want to Learn Price Action Strategies for Trading Forex?
Sign Up for our Monthly Newsletter and Get our FREE E-Book