USD/JPY (a 4-hour chart)
The yen strengthened after the International Monetary Fund had lowered its global economic growth forecast for both this and next year and had warned that the global economic recovery was weak and uneven.
The sellers were able to break through the strong support level of 108.50. The price did not manage to consolidate below the level despite it decreased to 108.00. This level was an additional obstacle, from which the pair bounced upward.
The price is finding the first support at 108.00, the next one is at 107.20. The price is finding the first resistance at 108.50, the next one is at 109.40.
There is a non-confirmed and a strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horisontal movement and form a “Dead 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 believe the growth will be continued now. The first target is the level 109.00.