The US and the Japanese moderate bond yields increased in the credit market which increases the US assets investments’ attractiveness. The Nasdaq high-tech index was the growth leader in the US stock market that indicates the interest growth for the risky assets. That is traditionally a negative factor for the Japanese yen as a funding currency. Meanwhile, investors are studying the US September industrial production release.
The USD/JPY started an upward corrective movement. The price managed to break the resistance level of 119.20.
The price is finding the first support at 119.20, the next one is 118.40. The resistance is at 120.40, the next one is at 121.60.
There is a strong sell signal. The price is below the Cloud now and the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen is directed downwards. The USD/JPY will keep falling until it is below the Cloud.
The MACD indicator is in a negative territory now. The histogram is decreasing.
If the course remains unchanged we will see the pair at the level of 118.40. Otherwise it will return above the 120.40.