USD/JPY (a 4-hour chart)
The stock markets instability supported the demand for the Japanese yen as a funding currency. The capital movement report in the Tokyo stock market again showed the bond demand increase. The Japan and the US government bond yields are declining that also reduces the US assets investments’ attractiveness. We expected to see the US labor market moderately positive data.
The price is again correcting.
The price is finding the first support at 119.20, the next one is 118.40. The price is finding the first resistance at 120.40, the next one is at 121.60.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a neutral territory. The price is increasing.
The potential decrease targets are two levels of support: 119.20 and 118.40