USD/JPY (a 4-hour chart)
Japan has published the April payment balance report. The Japan Central Bank foreign exchange reserves growth with the high level of Japanese securities purchases by foreign investors points out to the capital income into the country which made it possible to rely on the positive data output. The data came out at the level of -146.4B. The forecast median was +153B.
The bullish trend is still quite strong and investors will build up long positions on dips. Buyers were able to break through and consolidate above the maximum of 124.30. The pair fixated above and tested the level of 125.50. the pair rebound downwards from this level.
The price is finding the first support at 124.30, the next one is at 123.40. 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 correcting.
The approach to the level of 124.30 may lead to a price rebound upwards. The potential rebound target is the resistance level of 125.50.