The yen remained under pressure after the Japanese Tankan mixed corporate sentiment data. The Japan and the US government bond yields are increasing which is a bullish factor for the dollar. Meanwhile, we expected the ISM manufacturing sector positive data: 50.6 against the previous 51.1. In addition, the number of initial jobless claims totaled 277K against the previous 267K, still the market expected 270K.
The pair shows a trade in a flat between the levels of 120.40 and 119.20. by the end of the day the pair slightly decreased.
The price is finding the first support at 119.20, the next one is 118.40. The price is finding the first resistance at 120.40, the next one is at 121.60.
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 shows a horizontal movement and the Kijun-sen shows a downward 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 potential decrease targets are two levels of support: 119.20 and 118.40