The US dollar stopped the two day decline and regained some of its losses as traders are closing dollar positions. The European stock market was opened with decrease. Markets reacted negatively to the weak China PMI, preferring safe assets, including the yen.
The price is finding the first support at 120.40, the next one is 119.20. The resistance is at 121.60, the next one is at 122.40.
There is a weak and confirmed buy signal; the pair is in the Cloud. The Tenkan-sen crosses the Kijun-sen downwards. If the USD/JPY returns above the Cloud the growth will be continued.
The MACD indicator is in a neutral territory. The histogram is decreasing.
If the pair returns above the Cloud it has all chances to go to the level of 121.60. As an alternative scenario we will see a decrease to 119.20 and further to 118.40.