USD/JPY (a 4-hour chart)
The Japanese yen strengthened against the dollar. Obviously, the stock market and the technical resistance levels weakness favor the profit-taking on the instrument. In addition, the pressure on the dollar could be strengthened by the exporters selling.
There has been the support level of 103.70 retest. In the light of the high-volume the sellers tried to break below the level, but the test was followed by the price false bounce up.
The price is finding the first support at 103.70, the next one is at 103.30. The price is finding the first resistance at 104.00, the next one is at 104.35.
There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a neutral territory. The price is growing.
We believe the growth will be continued now. The first target is the level of 104.00, the next one is level of 104.35.