USD/JPY (a 4-hour chart)
Investors still have "risk appetite" which will put pressure on the Japanese yen as the funding currency. American benchmarks are set to test the historic highs which is a bullish factor for the pair. The current levels are attractive for investors who count on the uptrend continuation.
The pair broke through the channel lower bound of 120.40-122.00 and continues its corrective decline.
The price is finding the first support at 119.20, the next one is at 118.00. 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 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 falling.
The price is likely to go to the support level of 119.20.