USD/JPY (a 4-hour chart)
The March Japan trade balance release can disappoint traders with the negative data. The manufacturing sector weakness has a negative impact on the Japan economy. It is also necessary to note the Central Bank foreign exchange reserves reduction which indicates the low capital inflows in Japan and signals about the negative trade balance.
We observe demand for the risky assets in the world which in turn is a negative factor for the yen.
The price is finding the first support at 119.20, the next one is at 118.30. The price is finding the first resistance at 120.40, the next one is at 121.60.
There is a non-confirmed and a weak buy 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 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.
We may expect the growth towards 120.40 further on we expect a fall to 118.30.