USD/JPY (a 4-hour chart)
Japan celebrated Children's Day and its markets were closed. Services PMI in China by Caixin was the focus of investors' attention (51.8 vs. expectations 52.6).
The price is finding the first support at 106.60, the next one is at 105.80. The price is finding the first resistance at 107.40, the next one is at 108.20.
There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement forming a “Golden Cross”. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is correcting.
We expect the 108.20 line break that will open the way for the buyers to 109.00.