USD/JPY (a 4-hour chart)
The US positive macroeconomic statistics will strengthen not only demand for the US dollar (USDX), but also will support the US stock market. The employment growth indicates the possible GDP growth in the 4th quarter near 4% that is a positive factor for the stock market.
The trade is continued towards the trend line of 118.00. As long as the trend line is not broken through, the potential for the further growth is maintained.
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 sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward movement and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a neutral territory. The price is correcting.
The correction is observed. Nevertheless, we believe the growth will be continued now. The first target is the level of 120.40 and the next one is at 121.60.