The last three trading days the pair has been in the narrow range of 123.30 -123.60. Given the fact that the Japanese yen showed less corrective gains than all of the major currencies against the dollar we conclude that there are strong USD buyers in this pair who keep the market and gain positions towards the upward trend. However the pair fell amid the Fed’s report publication.
The price has consolidated below the strong resistance level of 123.50 amid the low volumes. Then the pair broke though this level and tested the level of 124.30. The price rebounded downwards from this level and closed the trades below the level of 123.50.
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 non-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 neutral territory. The price is decreasing.
The approach to the level of 124.30 may lead to a price rebound down. The potential rebound targets are the support levels of 122.40, 121.60.