USD/JPY (a 4-hour chart)
The CPI rose up by 0.2% in March as the Wall Street economist had expected. This indicator is not excessively high. The low demand for the risky assets is a negative factor for the pair dollar/yen. The debt market dynamics plays into the bears’ hands – t he US and Japan negative bond yields are declining.
The US dollar decline against the Japanese yen is amid the low volatility. The pair USD/JPY increased and broke through the resistance level of 119.20 at the end of the yesterday’s trades.
The price is finding the first support at 119.20, the next one is at 118.30. The price is finding the first resistance at 120.40, the next one is at 121.60.
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. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is correcting.
The price is likely to go to the resistance level of 120.40.