USD/JPY (a 4-hour chart)
The USD/JPY strengthened as growing expectations for a U.S. rate hike in 2016 continued to support the US dollar.
The USD/JPY pair maintained its strong bid tone. The price remained in a short-term upward channel. The pair reached a key technical level – 103.50 in early Europe. After a brief consolidation the price extended its gains and moved towards 104.30. The 50-EMA crossed the 100 and 200 EMAs upwards which is a buy signal. All moving averages moved upwards in the 4 hours chart. The resistance can be found at 103.50, the support comes in at 102.50.
The MACD histogram grew which indicates the buyers’ strength. RSI is within the overbought area.
The USD/JPY remains bullish with a target 104.30. The price needs to move below 102.50 to switch the tone to bearish.