USD/JPY (a 4-hour chart)
The pair dollar/yen is consolidating after a slight increase. There was the investors’ escape from the "risky assets" that will support the Japanese yen as a funding currency. The carry trade transactions closure and high-yield cross rate in the stock markets has traditionally supported the demand for the Japanese currency. The Japan financial markets were closed on Wednesday on the bank holidays.
The pair is consolidating below the resistance level of 120.40 that was tested.
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.
The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Golden Cross”.
The MACD indicator is in a neutral territory. The price is consolidating.
If the price fixates below the support 119.20, it may continue the downward trend in the short term. The potential target is 118.40.