USD/JPY (a 4-hour chart)
There was a holiday in the United States on Monday and the financial markets were closed on the occasion of Labor Day. Last week there was negative dynamics on the world's leading stock exchanges where bearish sentiments prevailed. The moderate demand for the dollar was forecasted amid the US Treasury bond yields increase.
The price has also started the weak correction. The pair broke the level of 119.20 upwards.
The price is finding the first support at 119.20, the next one is at 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 and the Kijun-sen show a horizontal movement. 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 recommend going short with the first target – 118.40. When the price consolidates below the first target it may go to the level 117.80.