Yen gotten stronger
Tatiana Norkina, FBS analyst
Under the bears' pressure, the currency pair was testing the three-week lows in the 118.80 area yesterday. The rate's decline was also caused by a significant weakening of the US dollar against the major world currencies. The four-hour Ichimoku indicator has changed completely, altering the cloud's character for the downwards and forming a dead cross. But there is quite a strong support level at 118.80 which is restraining the bears' rapid attack so far. Sales are also restricted by the market oversoldness, which is confirmed by the Chinkou line being in the corresponding area.
During today's trading, consolidation is possible at the current levels and, after the Tenkan and Kijun lines resistance testing, the pair may continue the downtrend.
Technical levels: support – 118.80; resistance – 119.45, 119.80.
1. Sell — 119.50; SL — 119.70; TP1 — 118.80; TP2 — 118.50.