USD/JPY (a 4-hour chart)
The Japan and the US government bond yields show the moderate increase which plays into the bulls’ hands. If the risk appetite keeps growing the Japanese yen may show weakness as a funding currency.
We cannot ignore the US two-year Treasury bonds growth which reflects expectations for the Fed interest rates.
The price continues its upward correction. The bears broke through the resistance level of 120.40.
The price is finding the first support at 120.40, the next one is at 119.20. The price is finding the first resistance at 121.60, the next one is at 122.40.
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 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 growing.
After the resistance level of 121.60 breakthrough upwards the way to the resistance level of 122.40 will be opened.