USD/JPY (a 4-hour chart)
The world leading stock markets sales point out to the lack of investors' risk appetite. "The capital flows analysis also indicates the interest decline in the "risky assets". The debt market dynamics also confirms this trend: the US and Japan government bond yields are declining that reduces investments’ attractiveness in the US assets.
The dollar started to strengthen and the pair continued its correction upwards and tested the resistance level of 120.40.
The price is finding the first support at 119.20, the next one is 118.40. The price is finding the first resistance at 120.40, the next one is 121.60.
There is a non-confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a neutral territory. The price is correcting.
We suppose the pair will go to 119.20 first. Having overcome the first target the price might go downwards to 118.40.