USD/JPY (a 4-hour chart)
The "bullish" sentiments have prevailed. The stock markets’ upward trend with the high-yield cross-rates increase indicated the "risk appetite presence among investors" which had a negative impact on the Japanese yen as a funding currency. However the yen became a leader again and the pair USD/JPY fell.
The medium-term bullish trend was stopped at the resistance level of 123.80 and turned downwards for a correction. Due to the formed correction sellers break through the mark of 123.20 and tested the support level of 122.40.
The price is finding the first support at 122.40, the next one is 121.30. The price is finding the first resistance at 123.20, the next one is at 123.80.
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 decreasing.
If the price fixates below the support 122.40, it may continue the downward trend in the short term. The potential target is 122.40.