USD/JPY (a 4-hour chart)
The Japan Ministry of Finance published the current account surplus data in December which amounted to 187.2 billion yen. The growth rate has not met analysts' forecasts that amounted to 355.8 billion yen and were lower than in November when the surplus amounted to 433.0 billion yen. The trade balance deficit reached 395.6 billion yen, beating analysts' expectations.
There was a rebound from the support level of 117.00. The price growth fell to 119.20. The pair rebounded downwards from this level. The trade volumes are in reduced zone.
The price is finding the first support at 118.00, the next one is at 117.00. The price is finding the first resistance at 119.20, the next one is at 120.40.
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 “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 consolidating.
We believe the consolidation will be continued now. The potential decrease targets are the support levels: 118.00, 117.00.