USD/JPY (a 4-hour chart)
In the absence of important macroeconomic statistics, the traders’ attention will be focused on the Japanese stock market dynamics. The US GDP moderately negative release for the fourth quarter will encourage bears to open short positions on the Tokyo Stock Exchange Market. We can expect the ISM index within the forecasted medians that cannot cause strong reaction from the traders’ part.
The trading week opening within this instrument was followed by a gap. Due to the price gap sellers tested the support the level of 117.00, but they could not consolidate under this level. Within two hours the gap was closed.
The price is finding the first support at 117.00, the next one is at 115.80. The price is finding the first resistance at 118.00, the next one is at 119.20.
There is a non-confirmed and a weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a neutral territory. The price is decreasing.
The approach to the level of 117.00 may lead to a price rebound up. The potential rebound target is the resistance level of 118.00.