USD/JPY (a 4-hour chart)
The US economy again showed unfavorable signals. Contrary to traders’ expectations, Housing Market Index fell from 60 to 58, and Empire State Manufacturing Index showed -16.64 against the forecast of -10.00. The Building Permits report for January was published. The forecast was 1.204M, the index showed 1.202M. Producer Price Index showed 0,1% versus the forecast of -0,2%.
The first support resides at 113.80, the next is at 113.00. The first resistance stands at 114.60, the next one is at 115.40.
There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement forming a “Golden Cross”. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a neutral territory. The price is decreasing.
The potential growth targets are the resistance levels: 114.60 and 115.40. The potential decrease targets are two levels of support: 113.80 and 113.00.