The US and Japan stock markets sales put pressure on the pair USD/JPY as investors closed their carry trade transactions and in this regard there is demand for the Japanese yen. The stock market decline will contribute to the US Treasury bond yields which had a positive impact on the US dollar.
The price is finding the first support at 122.40, the next one is at 121.60. The price is finding the first resistance at 123.50, the next one is at 124.30.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is consolidating.
We advise to consider short positions with the first target – 122.40. After fixing below the first target, the level 121.60 will become the next one.