Can yen hold above cloud?
Tatiana Norkina, FBS analyst
Recently, the USD/JPY currency pair has climbed into the positive area on the four-hour timeframe. The positive sentiment was determined by the golden cross formed by the Tenkan and Kijun lines. However, the pair's recovery process was interrupted near the 120th figure where there is a powerful resistance formed by the Senkou Span A and B lines. Stumbling upon it, the prices turned downwards and slid to the Ichimoku cloud upper border support, into the 119.60 area, this morning.
Obviously, if the bulls manage to hold above this level today, they will be able to make another attack on the 120.00 resistance in the near future. Otherwise, we do not rule out the prices enter the negative zone, below the cloud.
Technical levels: support – 119.60; resistance – 120.00.
Trade recommendations: off the market.