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Let’s know take a look at the three areas of decline within the downtrend.

In the first area there are three decline areas, which are separated by a three-day recovery and by a 10-day sideways market (see Figure 6). The Kijun line hangs above the prices, just as a resistance line should, but provides generally mixed trading signals: slow in the first two periods, but timely in the last period.

Figure 6. Application of the Ichimoku’s trend line (Kijun).  The Kijun line acted as a resistance line but provided mixed selling signals. (click to enlarge)

The second decline area consists of a clear downmove in the first half and of a choppy and low angled decline in the second half.  As Figure 7 shows, the Kijun line acted initially as a support level and then turned into a resistance line in the latter part of the move but provided only mixed selling signals.

Figure 7. Application of the Ichimoku’s trend line (Kijun).  The Kijun line acted as a resistance line in the latter part of the move but provided only mixed selling signals.

Finally, in the third phase of the downtrend, the Kijun line acted more its role.

Figure 8 shows it declining in line with the euro/dollar in the beginning and the end of the move and providing a strong barrier during the sideways trading area in the middle of the chart.

Figure 8. Application of the Ichimoku’s trend line (Kijun).  The Kijun line fell in line with the euro/dollar in the beginning and the end of the move and provided a strong barrier during the sideways area in the middle of the chart. (click to enlarge)

In conclusion, the Kijun line should not be used on its own for direction symmetry with the currency.  When used independently, this line works best for identifying overbought and oversold conditions.  In Figure 9, you can see four overbought conditions, marked with red arrows, in which the euro/dollar had moved up too much above the Kijun line, and three oversold conditions, emphasized by blue arrows, in which the currency pair slipped too much below the trend line. 

Figure 9.  Example of overbought and oversold conditions between the euro/dollar and the Kijun line.  There are four overbought conditions (red arrows) and three oversold conditions (blue arrows).