USD/JPY (a 4-hour chart)
The yen gained a support after the Prime Minister Abe reportedly said that the weak yen had both positive and negative consequences and he intended to monitor closely the weak yen impact to the regional economy, as well as small and medium enterprises.
The sellers tried to break below the support level of 108.50. The short-term testing led to the price upwards rebound.
The price is finding the support at 108.50, the next one is at 108.00. The price is finding the first resistance at 109.00, the next one is at 109.40.
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 and the Kijun-sen show a horizontal movement and form a “Dead cross”. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a positive territory. The price is consolidating.
We believe the growth will be continued now. The first target is the level of 109.40.