USD/JPY: yen strengthens
Tatiana Norkina, FBS analyst
It seems that the currency pair finally entrenched in the negative plane after breakthrough of the the four-hour Ichimoku cloud’s border at the beginning of the week.
The pair has fallen to four-week lows, to 116th figure, during the previous trading day. Ichimoku Cloud changed its character to the bearish, upsetting long-term customers.
The increase of prices that followed by the end of the day is likely to be corrective. Indeed, having reached the Kijun line’s level bulls eased the pressure.
Obviously, trade will take place inside of the Tenkan-Kijun channel during the next few hours. We expect new lows for the 115th figure if the breakdown of the Kijun-sen will not follow.
Technical levels: Support - 117.00; resistance - 117.90.
1. Sell- 117.80 / 90; SL - 118.10; TP1 - 117.00; TP2 - 116.00.