On Thursday, USD / JPY is consolidating near the March 25 local lows.
The dollar continues to weaken across the entire spectrum of the market. The decline in the pair, perhaps, would have been more dynamic if it were not for the alarming statistics on the epidemiological situation in Japan.
The country’s authorities said that on April 14, more than 4 thousand cases of COVID-19 infection were detected, which is comparable to the worst period at the beginning of the year. A state of emergency is being declared in a number of prefectures.
Bollinger Bands indicator on the chart of days (daily) is turning down.
The MACD indicator holds a sell signal, and its histogram, although still in the positive area, is rapidly approaching the zero line.
Stochastic remains in the area of minimum values.
We open new short positions after the breakdown below 108.61. Target 107.78. Stop loss is set at 109.00.
In case of breakdown above 109.00, we go to buy in the direction of 109.84. Place a protective stop at 108.61.