USD/JPY (a 4-hour chart)
In the absence of Japanese traders the pair USD/JPY was in horizontal flat. Then the pair increased.
The traders’ attention will be focused on the production ISM index. As we noted earlier, we expect the data at the current level or slightly worse that will add some pressure on the US dollar.
The support at the level of 120.40 could not keep selling pressure. The price rebounded down to the level of 119.20. Then the pair grew and tried to break the level of 120.40 upwards.
The price is finding the first support at 119.20, the next one is at 118.00. The price is finding the first resistance at 120.40, the next one is at 121.60.
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 an upward movement and the Kijun-sen shows a horizontal movement and form a “Golden Cross”. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a neutral territory. The price is increasing.
We suppose the pair will go to 118.00 first. Having overcome the first target the price might go downwards to 117.00.