USD/JPY (a 4-hour chart)
Japan published Monetary Base report (26.8% vs. expectations 29.3%), Service PMI from the Nikkei/Markit (49,3 vs. expectations 50,0). Meanwhile, April unemployment data in the US will allow us to see whether the US economy is strong enough to cope with another interest rates rise. The unemployment rate remained at the same place as expected.
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.
The potential growth targets are the resistance levels: 107.40 and 108.20.