USD/JPY (a 4-hour chart)
The yen suffered losses against the euro and the dollar after the Japan Prime Minister Abe announced the early parliamentary elections and postponed the planned sales tax increase.
This fact proves that the government is aware that the third world economy is not in the great shape and intends to take the additional stimulating measures.
The dollar continues to strengthen against the Japanese yen. The upward trend is on the declining volumes. Technically the yen demand is gradually weakening.
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 buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows 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 increasing.
We expect the 118.00 line break that will open the way for the buyers to 119.20.