USD/JPY (a 4-hour chart)
The United States and Japanese government bond yield differential has been declining increasing the investment attractiveness of the Japanese assets, thus supporting the yen. The US initial jobless claims release has been published, traders expected 278.000 against the previous 277.000, in fact the data came in at the level 284.000.
The first support resides at 117.80, the next is at 117.00. The first resistance stands at 118.40, the next one is at 119.20.
The indicator shows a strong sell signal. The price is under the Cloud and in under the Chincou-span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward movement forming a “Golden Cross”. The downward movement will be until the price is below the Cloud.
The MACD indicator is in a negative territory. The price is correcting.
The upward bounce potential target are 118.40 and 119.20.