USD/JPY: the strength test
Daily. Last week USD/JPY managed to hold above 108.70. The main holding factor for the bears was Kijun-sen, which acted as strong support. The market has approached the lower border of the Ichimoku Cloud, after it tested Senkou Span A in the 110.60 area. During this time Tenkan and Kijun formed the golden cross.
However, it was hard for the bulls to overcome such strong levels. The prices returned to Tenkan. As a result, the failure at 108.70 means that there's the lack of buyers at the market and, consequently, that the downtrend will resume.
Chart. Daily USD/JPY
H4. The pessimistic situation can be seen at H4 as well. Here the pair has renewed 3-week highs that made the Ichimoku lines redraw. However, today's trading is negative: the pair rose above Kijun-sen. That's why the market will likely be testing the Ichimoku Cloud in the near term. It means that the pair's growth will be put off.