USD/JPY (a 4-hour chart)
The yen attempts to recover its losses. The US dollar rose slightly against the yen after Mr. Abe, the Japanese Prime Minister, aggressively commented the weaker yen negative impact to the regional economy. The US home sales recent disappointing data in the secondary market contributed to the recent correction.
The buyers tested for strength the strong resistance level of 109.00. From this level it formed a downward correction. The corrective price decline was stopped by the rising trend line at 108.50.
The price is finding the first 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 weak 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 downward 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 correcting.
The potential growth targets are the resistance levels: 109.40, 110.00.