USD/JPY (a 4-hour chart)
Japan has published the June trade balance report. At its last monetary policy meeting the Bank of Japan pointed out to the weak economic growth in the second quarter as a whole and the exports decline in particular. The same trend confirms the Central Bank of Japan foreign exchange reserves reduction which has traditionally been strong in periods of the trade deficit increase.
Having rebounded from the resistance level of 124.30, the price fell and is consolidating.
The price is finding the first support at 123.50, the next one is at 122.40. The price is finding the first resistance at 124.30, the next one is at 125.50.
There is a confirmed and a weak buy signal. The price is on the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement and form a “Dead Cross”. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a neutral territory. The price is consolidating.
After the support level of 123.50 breakthrough down the way to the support 122.40 will be opened.