USD/JPY (a 4-hour chart)
Traders bought the yen as a safe haven when the Chinese market fell more than 7%, while Japanese's stock index lost 3%. The Japanese industrial sector business activity index showed growth to 52.6 in December from 52.5 in November. The US published the manufacturing sector PMI from ISM report at the level of 48,2 against the forecasted median at 49,0.
The first support resides at 119.20, the next is at 118.40. The first resistance stands at 120.40, the next one is at 121.30.
The indicator shows a strong sell signal. The price is under the Cloud and in under the Chincou-span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is below the Cloud.
The MACD indicator is in a negative territory. The price is correcting.
The potential growth targets are the resistance levels: 120.40, 121.30.