USD/JPY (a 4-hour chart)
The dollar grew above yen for the first time in three weeks. The yen weakened waiting for new fiscal stimulus from BoJ. The Japanese Bonds Market growth pushed the yen as well.
Technically, a bullish tone persists in the 4 hours chart. The USD/JPY pair kept rallying on hopes that the Japanese regulator will launch a stimulus program soon. Yesterday the instrument set a new local high at 106.00. Now the pair is overbought and we expect a bounce backwards. The resistance is at 106.00, the support comes in at 105.30.
MACD remained in the positive area. The histogram grew which is a buy signal. RSI is close to the overbought area. If its signal line decreases that will be a sell signal.
The pair pushed away from the 200-EMA which acts as a support in the 4 hours chart. The 50-EMA and the 100-EMA are below the price and are turning upwards which is a buy signal.
The pair may consolidate at the current levels. If the pair breaks the level of 105.30 downwards we expect a fall to 104.50.