USD/JPY (a 4-hour chart)
The stock markets sales increased the demand for the yen as a funding currency. The second quarter Japanese gross domestic product fell to -0.3% which is higher than economists' expectations by -0.4%. The GDP declined by 1.2% on the annualized basis compared to the previous three months in the period from April to June and it was also higher than the forecast by -1.8%.
The price is still correcting. The pair tested the support level of 119.20 and rebounded 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.
The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement.
The MACD indicator is in a negative territory. The price is consolidating.
We suppose the pair will go to 119.20 first. Having overcome the first target the price might go downwards to 118.40.