USD/JPY (a 4-hour chart)
The lack of "risk appetite" among investors continues to contribute to the Japanese yen demand as a funding currency. The high-yield cross-rates have been showing weakness from the beginning of the trading week. We believe traders are not interesting in new carry trade orders.
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 consolidating.
We may expect the flat trades between the levels of 118.40 and 119.20.