USD/JPY (a 4-hour chart)
The dollar strengthened following the upbeat Chinese CPI report. The dollar got stronger when the last Fed’s minutes reaffirmed investors’ expectations about the Fed rate-hike.
The USD/JPY preserved its positive tone on Friday. The pair was able to extend its buying momentum above 104.00. The price added about 0.64% during the trades of the day. The prices decreased by the end of the trades. The USD/JPY pair bounced from the 100-EMA upwards in the 1 hour chart. The price broke through the 50-EMA and moved away from the moving averages in the mentioned timeframe. All moving averages are pointing higher. The resistance can be found at 105.00, the support comes in at 104.00.
MACD is in the positive area. The histogram grew which indicates the buyers’ strength. RSI is within the overbought area.
The pair can establish a fresh 11-week high if the upward momentum persists. The price is trending towards the 105.00 resistance area. If the bearish pressure prevails the USD/JPY will return below 104.00.