USD/JPY (a 4-hour chart)
The course of the trade is determined by the world leading stock exchanges sentiments. The growth leaders were the Nasdaq high-tech index that indicates the investors’ risk appetite. In such circumstances, there appeared the demand for the carry trade transactions through the Japanese yen as a funding currency.
The July building permits weak reports in the US was reflected in the national currency. According to the data, instead of the expected reduction to 1.232M the index decreased to 1.119M, the previous data is 1.337M.
The pair USD/JPY has been consolidating around the support level of 124.30 for a long time.
The price is finding the first support at 124.30, the next one is at 123.50. The price is finding the first resistance at 125.50, the next one is at 127.00.
The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Golden Cross”.
The MACD indicator is in a neutral territory. The price is consolidating.
If the price fixates below the support 123.40, it may continue the downward trend in the short term. The potential target is 122.40.