USD/JPY (a 4-hour chart)
Last week Japan disappointed investors with the June trade balance weak data while the United States is pleased with the secondary market housing sales positive report as well as the jobless claims reduction.
The downward correction which began from the resistance level of 124.30 stopped at the support level of 123.50. The price came up to the level amid the low volumes and went into the prolonged consolidation and a slight decrease.
The price is finding the first support at 123.50, the next one is at 122.40. The price is finding the first resistance at 124.30, the next one is at 125.50.
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 “Dead Cross”.
The MACD indicator is in a neutral territory. The price is decreasing.
The sellers need to break below 123.50 for a steady downward trend. The way to the mark 122.40 will be opened after this breakthrough.