The pair retreated from 18 months maximum after a strong rally of the Japanese currency. The dynamics of the dollar against the yen may be volatile the next few days until Japanese traders return from the holidays. The yen still receives some support after the Bank of Japan decision to leave its monetary policy unchanged.
The price is finding the first support at 106.60, the next one is at 105.80. The price is finding the first resistance at 107.40, the next one is at 108.20.
There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is correcting.
We recommend going short with the first target – 106.60. When the price consolidates below the first target it may go to the level 105.80.