Yen keeps strengthening against Dollar
Tatiana Norkina, FBS analyst
The USD/JPY currency pair rate plummeted to the 116th figure during yesterday's trading, losing around 6 figures within a moment (let us remind you that trades began at the 122nd figure). A little later, buyers managed to return the pair to 120.00, but here they encountered the resistance formed by the Kijun-sen line.
Today, trades are carried out below Tenkan-sen which is holding the correction back in the 119.60 area. At the same time, according to the Ichimoku indicator, the trend remains downward. Thus, the Ichimoku cloud is expanding downwards again, while the Tenkan and Kijun lines have formed a distinct dead cross.
The pair is obvious to hit consolidation at the current levels in the near future, due to oversoldness. Then, we are expecting the rate's decline.
Technical levels: support – 117.90, 118.60; resistance – 119.70, 120.00.
1. Sell — 119.70; SL — 120.00; TP1 — 118.60; TP2 — 117.90.