USD/JPY (a 4-hour chart)
The Japan monetary policy meeting minutes were published in the Asian session on Tuesday. We received the industrial production positive results, the industrial production volume increased to 1.1% m/m which is higher than the growth expectations up to 0.8%. The service sector business activity index came out better than expected: 0.3% m/m against the growth expectations up to 0.1% m/m while the index was -0.7% m/m last month.
The price consolidated above the support level of 124.30. However the pair fell below this level amid the weakened dollar. Now the mark of 124.30 is playing the role of a strong resistance.
The price is finding the first support at 123.50, the next one is at 122.40. The price is finding the first resistance at 124.30, the next one is at 125.50.
The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement.
The MACD indicator is in a neutral territory. The price is decreasing.
We believe the decrease will be continued now. The first target is the level 123.50. the next target is the level of 122.40.