USD/JPY (a 4-hour chart)
Demand for the yen was resumed when industrial production in Japan for January rose compared with the previous month rate. Industrial production growth was 3.7%, while economists forecasted an increase by only 3.3%. Meanwhile, the US published Pending Home Sales. The index came in at - 2.5% versus expected 0.5%.
The first support resides at 112.20, the next is at 111.40. The first resistance stands at 113.00, the next one is at 113.80.
The price is in the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement forming a “Golden Cross”.
The MACD indicator is in a positive territory. The price is correcting.
The potential decrease targets are two levels of support: 112.20 and 111.40. The potential growth targets are the resistance levels: 113.00 and 113.80.