USD/JPY (a 4-hour chart)
We should expect the pair’s growth amid "risk appetite" growth among investors. The US corporations positive quarterly reports returned "bulls" on the market. The stock market and high-yield cross-rates growth indicate carry trade positions increase and in this regard the yen will be under pressure as the funding currency. The debt market also confirms the USD/JPY upward trend: the US and Japanese government bonds profitability differential are being expanded.
The first support resides at 118.40, the next is at 117.80. The first resistance lies at 119.20, the next one is at 120.40.
There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement forming 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 growing.
The pair can grow to the resistance level of 119.20. Should this mark be reached successfully, a further extension towards 120.40 is possible.