USD/JPY (a 4-hour chart)
The second quarter Japan GDP preliminary data showed -0.4% q/q vs. 1.1% q/q in the first quarter and the forecast was -0.5% q/q. These messages did not evoke any emotions in the market.
On Wednesday the Japan foreign trade assessment will be presented - it is expected the exports increase and the imports reduction which is able to bring the trade balance deficit to the minimum.
The level of 124.30 breakthrough was followed by the reversal level testing. Now this mark acts as a strong support where the continuous consolidation was formed.
The price is finding the first support at 124.30, the next one is at 123.50. The price is finding the first resistance at 125.50, the next one is at 127.00.
The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement.
The MACD indicator is in a negative territory. The price is consolidating.
Currently, the price is trading above the support level of 124.30. If the pair breaks it we expect the decrease to 123.50.