USD/JPY is being corrected in the cloud
Tatiana Norkina, FBS analyst
Bulls could not keep the exchange rate of the currency pair USD/JPY in the positive area. Negative attitudes appeared at the end of last week: the breakdown of the support of Ichimoku cloud top, followed by the strengthening of the dead cross only intensified the bearish pressure on the pair. This thing led to a sharp drop of prices on Monday to support of 123.00.
Today, there is an intensification of buyers on the market, but so far it seems only a short-term correction after yesterday's fall. Indeed, Tenkan and Kijun lines are in no hurry to cancel the effect of the dead cross. Therefore, after testing their resistance around 123.50/60, the market may continue to decrease in the short-term and go down to the area of 122.40. If a breakdown occurs the resistance, we will expect a quick resumption of the primary uptrend.
Technical levels: Support - 123.00, 122.40; Resistance - 123.50.
1. Sell - 123.50; SL - 123.70; TP1 - 123.00; TP2 - 122.40.