USD/JPY (a 4-hour chart)
Last week there was a bullish sentiment in the world leading stock exchanges that indicate demand for the risky assets. In its turn, it is a positive factor for the pair dollar/yen. On the other hand, traders reacted quite sluggish to the May US retail sales positive statistics.
The price is finding the first support at 122.40, the next one is at 121.60. The price is finding the first resistance at 123.50, the next one is at 124.30.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a downward 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 consolidating.
We advise to consider short positions with the first target – 122.40. After fixing below the first target, the level 121.60 will become the next one.