USD/JPY (a 4-hour chart)
Last Friday yen continued strengthening against the dollar, despite the BoJ head’s comments that the Japanese economy could revive due to the negative rates. Mr. Abe’s statements supported the yen as well. He talked about the importance of increasing the fees to increase expenses. Mr. Abe stressed that the regulator did not have any intention to postpone the increase in sales tax once again.
The first support resides at 112.20, the next is at 111.40. The first resistance stands at 113.00, the next one is at 113.80.
There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement forming 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.
After the support level of 113.00 breakthrough down the way to the support 112.20 will be opened.