USD/JPY: trading within cloud
Tatiana Norkina, FBS analyst
The currency pair still fails to escape from the cloud area, where it ended up on Monday. Growth to the four-hour Ichimoku cloud upper border does not yet prove the bulls' strength. On the contrary, the second attempt has already been unsuccessful: the Senkou Span B line resistance testing was followed by a sharp rebound to Kijun-sen that had formed support in the 119.60 area.
Consolidation at these levels is obvious to exert moral support to the buyers and, possibly, attract new ones. Otherwise, the bears might arrange powerful sales that can lead to the daily trend change - the dead cross looks way too suspicious on the daily timeframe.
Technical levels: support – 119.30, 119.60; resistance – 120.20/30.
1. Sell — 119.40; SL — 119.60; TP1 — 118.30; TP2 — 118.00.
2. Buy — 120.00; SL — 119.80; TP1 — 120.60; TP2 — 121.20.