USD/JPY (a 4-hour chart)
Now there is observed correction after strong sales in the world leading stock markets. Capitals are coming back to the stock market and are going from the safe assets - gold and bond yields. In this context, investors will open the carry trade transactions which will put pressure on the Japanese yen as a funding currency.
The US dollar is trading different directional. The price is trading above the support level of 119.20.
The price is finding the first support at 119.20, the next one is at 118.40. The price is finding the first resistance at 120.40, the next one is at 121.60.
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. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is correcting.
We suppose the pair will go to the support level of 118.40.