USD/JPY (a 4-hour chart)
The fundamental background indicates the upward trend continuation. First, the Japan trade balance negative release for January shows the overall economy and the particular industrial production weakness. The second, the foreign exchange market is now living with rumors about the Fed monetary policy tightening and this factor strongly supports the dollar.
The resistance testing of 121.60 was followed by the very low volume. The pair returned under this level.
The strong divergence on the volumes signals towards the just formed reversal. However, the medium-term bullish trend is still relevant from the technical point of view.
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 and the Kijun-sen show an upward movement. 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 pair is going upwards. As long as the price is trading above the level of 120.40 buyers remain strong. The bulls’ target is the level 121.60.