USD/JPY (a 4-hour chart)
In the absence of Japan important macroeconomic statistics publication as well as the bank holiday in the United States, traders will focus their attention on the trades’ dynamics in the Tokyo stock exchange. The US inflation Friday's release encouraged bulls to long, as a result we have seen all three major indices steady growth. We expect demand for Japanese corporate bonds which will also support the USD/JPY bulls.
The price is finding the first support at 117.00, the next one is at 115.80. The price is finding the first resistance at 118.00, the next one is at 119.20.
There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is correcting.
The potential growth target is the resistance level of 118.00.