USD/JPY (a 4-hour chart)
The US secondary market housing sales data can make a pleasant surprise. The November mortgage lending growth was 1.26% compared to the previous month that indicates the real estate sales increase, both primary and secondary markets. However the data came out less then forecasted median: 4,76M against 5,35M.
The first support resides at 120.40, the next one is 119.20. The first resistance stands at 121.30, the next one is at 122.40.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows 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 negative territory. The price is decreasing.
We believe the consolidation between the levels of 120.40 and 121.30 will be continued now. Then we expect the level of 119.20 testing soon.