USD/JPY (a 4-hour chart)
Japan published the service sector activity release. The October PMI index showed a decline to the level of 48.7, indicating the weak data. On the contrary the United States can please traders with retail sales positive report for November that could increase demand on the US stock market and will encourage bulls to open long positions.
Sellers broke through the upper channel lower bound of 119.20 and there was the strong support level breakthrough of 118.00. The formed breakthroughs signal towards the bullish trend reversal. Nevertheless the pair broke through the resistance level of 119.20 upwards.
The price is finding the first support at 119.20, the next one is at 118.00. 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 above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”.
The MACD indicator is in a negative territory. The price is correcting.
We expect the 118.00 line break that will open the way to 117.00, further then towards 115.80.