USD/JPY (a 4-hour chart)
The Japanese preliminary Gross Domestic Product for Q1 strengthened (+ 0,4% vs. forecast 0,1%). The GDP grew by 1,7% during the first quarter (on an annual basis). Hopes that the Bank of Japan will soften the monetary policy further significantly decreased amid the improved statistics in Japan and the United States.
The price is finding the first support at 109.80, the next one is at 109.00. The price is finding the first resistance at 110.60, the next one is at 111.40.
There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a positive territory. The price is growing.
We believe the growth will be continued now. The first target is the level 110.60, the next one is 111.40.