USD/JPY (a 4-hour chart)
Yesterday we observed a USD/JPY correction and also on the world's leading stock markets, so today we may expect the bulls’ return. The US Treasury 10-year bond yields are still below 2% and the current levels are attractive for long positions on the US stock market.
The first downward trend line testing of 119.20 was followed by a slight price rebound downwards. Trading volumes have not shown spikes at the lower prices. Then the pair increased and broke through the resistance level of 119.20.
The price is finding the first support at 119.20, the next one is at 118.00. The price is finding the first resistance at 120.20, 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 “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 120.40 may lead to a price rebound down. The potential rebound target is the support level of 117.00.