USD/JPY (a 4-hour chart)
The dollar kept strengthening across the board on expectations that the Fed will hike rate this year.
The trend is clearly bullish for now. The USD/JPY pair was in buy mode on Monday. The pair has completed a downside impulse, the price bounced from the mark 102.90 and moved higher. The pair recovered all its losses during the European hours. According to the 4 hours chart, the price is in a mid-term ascending channel, moving upwards from its lower limit. The 50-EMA extended its growth, the 100 and 200 EMAs are moderately bullish in the mentioned timeframe. The resistance can be found at 103.50, the support comes in at 102.50.
MACD shows a divergence in the 1 hour chart. The MACD histogram grew which indicates the buyers’ strength. RSI moved towards the overvalued territory.
The indicators recommend long positions, suggesting the pair is to grow further. Buyers seem to plan to re-test 103.50 and to move higher towards last week high at 104.14.