Tatiana Norkina, FBS analyst
Trades on the USD/JPY currency pair have not been easy recently. The lateral movement that began four weeks ago is still going on. Neither bulls nor bears can bring themselves to start action. Yesterday's session was quite nervous: after falling to the local support at 119.60 in the morning, the pair's rate again soared to 120.50/60. But the bulls did not have the courage to break through the level again. Therefore, the prices returned inside the four-hour cloud.
Complex situation with the Ichimoku indicator remains as well. All lines are directed sideways, the cloud is in the most narrow range, and the Tenkan and Kijun lines are likely to form a new crossing. Under these circumstances, we recommend you to refrain from trading on this instrument.
Technical levels: support – 119.60; resistance – 120.50/60.
Trade recommendations: out of market.