USD/JPY (a 4-hour chart)
The US ISM manufacturing sector business climate report points out to the industrial growth. There was noted the orders growth in the 11 sectors and the employment growth in 14 sectors, including the oil sector which in recent months has experienced hard times because of the energy low prices.
The resistance level of 124.30 did not stop the upward trend. The continuous consolidation below the level was followed by breakthrough. However the consolidation above the broken level was short-term and the pair fell below it.
The price is finding the first support at 123.50, the next one is at 122.40. The price is finding the first resistance at 124.30, the next one is at 125.50.
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 horizontal movement and the Kijun-sen shows an upward movement. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a positive territory. The price is correcting.
We expect the 123.50 line break that will open the way for the sellers to 122.40, further then towards 121.60.