USD/JPY (a 4-hour chart)
The United States did not please traders with the building permits number very positive release which did not encouraged bulls to long. Yesterday we saw a global growth in the equity markets which indicates a strong demand for the risky assets. In this regard, the yen will once again be a funding currency for the carry trade deals and we can expect the Japanese yen decline. Now the pair is in the flat trading.
The price is finding the first support at 118.30, the next one is at 117.50. The price is finding the first resistance at 119.20, the next one is at 120.40.
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 a downward movement and the Kijun-sen shows a horizontal 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.
If the price fixates below the support 118.30, it may continue the downward trend in the short term. The potential targets is 117.50.