USD/JPY (a 4-hour chart)
The China instability with the oil prices sharp decline contributed to the US stock market sales. Against this background, it was expected the Tokyo stock market negative trend which will contribute to demand for the yen as a funding currency. Investors' attention was also directed to the initial jobless claims. According to the US Labor Department the initial jobless claims number became more than 4 thousand having increased to 277 thousand.
The long-term price consolidation was below the strong resistance level of 124.30 that was followed by the prices rebound downwards and the support level of 123.50 breakthrough.
The price is finding the first support at 122.40, the next one is at 121.60. The price is finding the first resistance at 123.50, the next one is at 124.30.
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 and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is decreasing.
If the price fixates below the support 122.40, it may continue the downward trend in the short term. The potential target is 121.60.