USD/JPY: consolidating above Kijun-sen
Tatiana Norkina, FBS analyst
In the recent days, the pair has been trading within the four-hour Tenkan-Kijun channel. As expected, the Kijun-Sen line has constrained the short-term bears attack, not letting the rate decline to the Ichimoku cloud upper border levels. However, at this point, we are witnessing formation of an atypical dead cross, which would cause confusion to the further development of the uptrend.
Therefore, support in the 119.50 area is still relevant for the bulls. If they manage to fix above the Tenkan and Kijun lines, we should expect a break through the resistance within the 120th figure in the near future. Otherwise, we will again see a slide to the Ichimoku cloud lower border, 118.60.
Technical levels: support – 119.40/50; resistance – 120.00, 120.50.
1. Buy — 119.70/60; SL — 119.40; TP1 — 120.50; TP2 — 120.90.