USD/JPY (a 4-hour chart)
The Friday BSI large manufacturing business conditions strong report indicates the manufacturing sector business activity growth which is a positive factor for the Japanese economy and may support the national currency in the short term. In addition, the US and the Japanese government bond yields are declining that reduces the investments’ attractiveness in the US assets.
The price started a weak correction. The pair broke through th support level of 120.40.
The price is finding the first support at 119.20, the next one is 118.40. The price is finding the first resistance at 120.40, the next one is 121.60.
The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Dead Cross”.
The MACD indicator is in a neutral territory. The price is correcting.
The buyers need to break above 121.60 for a steady growth. The way to the mark 122.40 will be opened after this breakthrough.