USD/JPY (a 4-hour chart)
The United States continue to disappoint investors with weak macroeconomic statistics. The ISM service sector business activity weak report was added to the negative labor market release which is a bearish factor for the dollar. The US stock market growth does not still indicate the strong demand for the risky assets.
Before having reached the strong support level of 118.30 amid the low volume, the price reversed upwards to the correction. Buyers raised the price to the nearest resistance level of 119.20. This level was broken through and the growth continued. The resistance level of 120.40 was tested.
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 strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show 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.
The potential growth targets are the resistance levels: 120.40, 121.60.