USD/JPY (a 4-hour chart)
Japanese banks have started its work after the three-day break. Yesterday there was the upward trend in the European and North American stock markets, but the market dynamics as a whole indicates that the short-term price growth is a correctional movement. On the other hand, the commodity markets negative dynamics will support the US currency as the raw materials cost was denominated in dollars.
The pair USD/JPY decreased after a consolation. The pair tested the support level of 119/20 and rebounded upwards.
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.
There is a confirmed and a weak 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 an upward 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 consolidating.
We expect the 119.20 line break that will open the way for the sellers to 118.40.