USD/JPY: trade below cloud
Tatiana Norkina, FBS analyst
Testing of the four-hour Ichimoku cloud upper border turned out a failure. A one-time touch of the Senkou Span A level in the 121.20 area, which was mentioned in the previous review, ended in a total defeat of the bulls. The currency pair rate plummeted, breaking the horizontal support of Senkou Span B.
Then, the pair consolidated in the negative zone, once again confirming the bears commitment.
Under these circumstances, we can expect the prices lowering into the 118.80 area.
Technical levels: support – 119.60, 119.20, 118.80; resistance – 119.80, 120.10.
1. Sell— 120.00; SL — 120.20; TP1 — 119.20; TP2 — 118.80.