USD/JPY (a 4-hour chart)
We may expect the downward trend moderate development. Firstly, the oil prices increase is a negative factor for the US dollar. Secondly, there was a weak demand for the risky assets that can cheer bears to short. In this regard, we expect the level of 118.30 testing and after that we expect the market stabilization and the technical rebound.
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 horizontal movement and the Kijun-sen shows a downward 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 decreasing.
The pair can grow to the resistance level of 119.20. After breaking 119.20 the buyers may go to 120.40 and 121.60.