USD/JPY (a 4-hour chart)
The Japan banks were closed on the occasion of the state holiday. In this regard, we expect a low volatility during the Asian trading session. Investors will buy the quotations reduction amid the ADP negative data. The Australian bond yields demonstrate high growth that may contribute to the carry trade transactions increase. The pair AUD/JPY cross-rate had increased which is an excellent proof of that.
The price consolidation above the resistance level of 119.20 was followed by the level of 120.40 testing and the latest decrease.
The price is finding the first support at 119.20, the next one is at 118.30. The price is finding the first resistance at 120.40, the next one is at 121.60.
There is a confirmed and a weak 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.
The approach to the level of 119.20 may lead to a price rebound upwards. The potential rebound target is the resistance level of 120.40.