USD/JPY (a 4-hour chart)
Traders expected the US Federal Reserve to tighten the monetary policy. The Fed published its decision to keep the rate at the level of 0,25%.The US government bond yields have been greatly increasing for the last two trading days which increases the investments’ attractiveness into the US assets. Yesterday the Nasdaq index demonstrated the weakest growth from the major stock indices which signals about the investors’ exit from the risky assets.
The price resumed its upward movement. However, the dollar sharply fell by the end of the trades. The pair tested the support level of 120.40.
The price is finding the first support at 120.40, the next one is 119.20. The price is finding the first resistance at 121.60, the next one is 122.40.
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 “Golden Cross”.
The MACD indicator is in a neutral territory. The price is decreasing.
The pair can grow to the resistance level of 121.60. After breaking 121.60 the buyers may go to 122.40.