USD/JPY (a 4-hour chart)
The Japan, Germany and the US width indicator points out to the strong sellers’ presence in corporate securities. The exchange trading funds, investing in Emerging Markets, again noted the strong capital outflow that traditionally occurs in sales periods. On the other hand, the debt market points out to the investments attractiveness in US assets.
The pair dollar/ yen has tested the support level of 119.20 and increased to the resistance level of 120.40. The pair rebounded downwards.
The price is finding the first support at 119.20, the next one is at 118.40. The price is finding the first resistance at 120.40, the next one is at 121.60.
The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”.
The MACD indicator is in a negative territory. The price is consolidating.
We expect the 119.20 line break that will open the way for the sellers to 118.40.