USD/JPY (a 4-hour chart)
The Bank of Japan will not increase the QE program amid the oil prices growth. This factor will not put pressure on the Japanese yen. The US first quarter GDP negative report froze the bulls’ enthusiasm in global stock markets that will make some traders to fix part of the long. This factor will commit the carry trade transactions which will support the demand for the Japanese yen.
The price has not been able to break through below the support level of 118.30 for the sixth week. The pair rebounded upwards and broke through the resistance level of 119.20.
The price is finding the first support at 119.20, the next one is at 118.30. The price is finding the first resistance at 120.40, the next one is at 121.60.
There is a non-confirmed and a weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a neutral territory. The price is correcting.
The pair can grow to the resistance level of 120.40. After breaking 120.40 the buyers may go to 121.60.