There was the "bubble" burst in the Chinese stock market that yesterday caused strong sales in the Asian stock markets and contributed to demand for the Japanese yen as a funding currency. The pair USD / JPY quotations came to the level of 120.40 and rebounded to the level of 121.60 where the corrective movement development was formed.
The price is finding the first support at 120.40, the next one is at 119.20. The price is finding the first resistance at 121.60, the next one is at 122.40.
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 downward movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is falling.
The trend is a down side. We expect the level of 120.40 testing soon. Having overcome the first target the price might go downwards to 119.20.