USD/JPY (a 4-hour chart)
The yen fell at the end of last week for the first time on rumors that the Prime Minister Shinzo Abe of the Liberal Democratic Party will probably win in the elections which took place on the weekend.
The Japan basic machine orders data points out to the Japanese economic difficulties. According to the data, the leading capital expenditure indicator decreased by 6.4% after growth during five months in October while economists expected decline by 1.9%.
The support level short-test of 118.00 was followed by the prices rebound upwards with the further downtrend channel upper bound of 119.20 testing. Then the pair decreased under this resistance.
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.
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. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is consolidating.
The pair is close to the strong resistance level of 119.20. If the pair breaks it we expect the growth to 120.40 and 121.60.