USD/JPY (a 4-hour chart)
The yen rally against the dollar and the euro was stopped on Tuesday when the Chinese stock market started a recovery though traders are still not sure that the Chinese market reached its bottom. The yen still may strengthen expecting the BoJ monetary policy easing in the short term. The United States weak data may support the yen due to risk aversion. The United States published the New York ISM at the level of 716,6.
The first support resides at 118.40, the next is at 117.20. The first resistance stands at 119.20, the next one is at 120.40.
The indicator shows a strong sell signal. The price is under the Cloud and in under the Chincou-span. The Tenkan-sen shows a downward movement and the Kijun-sen shows 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 decreasing.
The upward bounce potential targets are 119.20, 120.40.