USD/JPY (a 4-hour chart)
The US dollar is declining against the yen after a consolidation at the end of the previous two sessions. The dollar is waiting for the further consolidation period and can begin to rebuild its positions. The pair is still in the range and its movements to the lower bound are used as an opportunity to enter the market. However, bulls still face the lack of strong growth drivers: the Japanese investors’ activity continued to support the pair, but the yield spreads dynamics does not give cause for optimism.
The USD/JPY started an upward corrective movement. The price managed to break the resistance level of 119.20.
The price is finding the first support at 119.20, the next one is 118.40. The resistance is at 120.40, the next one is at 121.60.
There is a weak sell signal. The price is below the Cloud and the Chinkou Span now. The Tenkan-sen is crossing the Kijun-sen upwards. Two lines give a “Golden Cross” signal. The USD/JPY will keep falling until it is below the Cloud.
The MACD indicator is in a negative territory now. The histogram is growing.
If the pair grows it will grow to the level of 120.40. If it falls it will decrease to 119.20.