USD/JPY (a 4-hour chart)
Japan has published the GDP data for the first quarter. The GDP rose up by 0.6% in the first quarter and increased by 2.5% on the annual basis. The GDP rose up by 0.4% in the fourth quarter. The result was higher than the consensus forecast relative to the 0.4% growth on the quarterly basis.
Despite the fact that the trading volumes are still in the low zone, the buyers were able to break through and consolidate above the resistance level of 120.40.
The price is finding the first support at 120.40, the next one is at 119.20. The price is finding the first resistance at 121.60, the next one is at 122.40.
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 an upward movement and the Kijun-sen shows a horizontal movement, and form a “Golden Cross”. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a positive territory. The price is growing.
If the price fixates below the support 120.40, it may continue the downward trend in the short term. The potential target is 119.20.