USD/JPY (a 4-hour chart)
Japanese exporters felt confident enough in the first quarter and according to the April results, the low exchange rate indicates the positive trend continuation. Taking into account the profit taking on the long positions in the US stock market on Friday and the carry trade closing deals there was the AUD/JPY decrease. Given the fact that the US dollar bullish trend is gaining momentum – we should not count on the quotations strong decrease.
Buyers have tested and consolidated under the resistance level of 121.60. The level breakthrough was on the increased volume - bulls are now strong.
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 a horizontal movement and the Kijun-sen show 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 consolidating.
The pair is close to the strong resistance level of 121.60. If the pair breaks it we expect the growth to 122.40.