USD/JPY: break through the cloud
Tatiana Norkina, FBS analyst
The US dollar continues losing ground to the yen. Yesterday we witnessed a significant decrease of the currency pair rate, which was accompanied by the breaking through the support of the four-hour Ichimoku cloud lower border. The character of the break through Senkou Span B shows high probability of increase of the bearish sentiment in the market. The importance of this break is intensified by the change of the cloud character.
Oscillators lines are falling down directionally, also confirming the desire of market participants to be on the sellers' side. Further break through the 117th figure is likely to trigger the rate to drop to the next strong support around 116.15.
Technical levels: support – 117.00, 116.15; resistance – 117.60.
1. Sell— 117.60; SL — 117.80; TP1 — 117.00; TP2 — 116.15.