USD/JPY (a 4-hour chart)
The US new orders indicator also fell below 50%, only 5 out of 13 branches have reported about the orders increase. On the other hand, the employment indicator showed an increase by 3.7 p. and has risen above 50% level which is a positive factor for the Friday's Non-Farm release. The oil and gas sector as well as the auto industry continues to claim about the staff reduction. This report is the first wake-up call for the US economy as a whole and the dollar in particular.
The pair USD/JPY played its growth out at the beginning of the week, having fallen below the level of 123.20. Initially, the pair showed a sharp fall then the quotes have slightly recovered. The trades closed above the level of 123.20.
The price is finding the first support at 123.20, the next one is 122.40. The price is finding the first resistance at 123.80, the next one is at 124.30.
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 and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is under the Cloud.
The MACD indicator is in a positive territory. The price is growing.
We recommend going long with the first target – 123.80. When the price consolidates above the first target it may go to the level 124.30.