USD/JPY (a 4-hour chart)
The dollar showed growth on the increased expectations that in the context of the US economy improvements the Fed will resort to the interest rates increase in the coming months, possibly as early as September.
The correction was short after the resistance level of 124.30 retesting. Before reaching the support level of 123.50, buyers have reversed the formed correction up to the resistance level of 124.30 and broke it upwards.
The price is finding the first support at 124.30, the next one is at 123.50. The price is finding the first resistance at 125.50, the next one is at 127.00.
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 positive territory. The price is growing.
We expect the 125.50 line break that will open the way for the buyers to 127.00.