USD/JPY: recovery to the cloud

Tatiana Norkina, an analyst at FBS

During yesterday's dollar strengthening, the currency pair has grown to the level of the lower border of the four-hour Ichimoku cloud, in the area of 118.60. Here the strong resistance was formed by Senkou Span B line, which has not passed the bulls above. It should be noted that despite of this rapid recovery of the pair, Tenkan and Kijun still hold the dead cross, and Ichimoku cloud did not even get narrow. It is possible that a correction in the market will continue. The prices will be observed in the area of 117.30, if the bulls still are not able to get into the positive zone.

Oscillators are growing slow. MACD hardly crossed the zero mark, but RSI is in the middle of the channel.

Technical levels: Support - 117.30; resistance - 118.60.

Trading recommendations:

1. Sell- 118.60; SL - 118.80; TP1 - 117.30; TP2 - 117.00.

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