USD/JPY (a 4-hour chart)
The Japanese yen was an outsider last week and fell against the dollar. The US stock market optimism caused by the strong third quarter earnings reports by American companies and the US data supported the dollar that is the positive evidence for the world largest economic recovery.
The buyers have confidently broken through the very strong resistance level of 107.60. The breakthrough was at the lower volumes and the trade concluded more than 120 points.
The price is finding the first support at 108.00, the next one is at 107.60. The price is finding the resistance at 108.50.
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 an upward movement and the Kijun-sen shows a horizontal 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 upward bounce potential target is 108.50.