USD/JPY trading inside cloud
Tatiana Norkina, FBS analyst
The USD/JPY currency pair keeps correcting within the lateral movement that began two weeks ago. The pair is still holding above the 122.30/40 support but now it is happening inside the four-hour Ichimoku cloud. Yesterday's failed attempt to break through the Tenkan and Kijun lines resistance might trigger the bears to action, allowing them to test the 122.00 and 121.80 levels. The bears are now as well supported by the dead cross formed by the Tenkan-sen and Kijun-sen lines. The cloud, however, remains bullish at the same time. Therefore, consolidation might be completed in the medium term and the bulls would start pressuring again.
Technical levels: support – 122.00; resistance – 123.10.
1. Buy — 122.00; SL — 121.80; TP1 — 123.00; TP2 — 123.50.