USD/JPY (a 4-hour chart)
In the absence of the US and Japan important macroeconomic statistics, traders will focus their attention on the stock and bond market dynamics. Yesterday we observed a high demand for the risky assets amid the geopolitical tension decrease because of the Ukraine events as well as the US retail sales positive statistics.
After testing the strong resistance level of 120.40, the price has formed a short-term consolidation and sharply fell downwards. The support level of 119.20.
The price is finding the first support at 118.00, the next one is at 117.00. The price is finding the first resistance at 119.20, the next one is at 120.40.
There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a neutral territory. The price is correcting.
We may expect the fall towards 118.00 further on we expect a decrease to 117.00 where the pair may stop.