USD/JPY (a 4-hour chart)
Investors are escaping from the "risk assets" that will support the demand for the Japanese yen as a funding currency. Now we expect the "bearish" sentiment against the US dollar on the bond market: the US 10-year government bond yields are declining against the Japanese counterparts which is a positive factor for the yen.
After the support level of 120.40 breakthrough there was another strong support level of 119.20 break. The two levels breakthroughs were on the increased volumes, sellers are gaining strength.
The price is finding the first support at 118.40, the next one is at 117.80. The price is finding the first resistance at 119.20, the next one is at 120.40.
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 and the Kijun-sen show a horizontal movement. 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 suppose the pair will go to 117.80 first. Having overcome the first target the price might go downwards to 117.00.