USD/JPY (a 4-hour chart)
The USD/JPY pair recovered on Monday due to disappointing Overall Household Spending report in Japan.
Bulls seemed to have returned in the game on Tuesday. The pair bounced off the lower limit of the ascending channel and extended its near-term upward trajectory. Having bounced off 112.00 the price trended to 113.00 and tested the level ahead of the NY session. After breaking the level the dollar accelerated its growth and headed towards 114.00. The price continued developing well above the moving averages in the 1 hour chart. The pair grew and broke the 50 and 100 EMAs in the mentioned timeframe. The moving averages are pointing higher. The resistance is highlighted at 114.00, the support comes in at 113.00.
The MACD histogram grew which indicates buyers’ strength. RSI traded to the upside.
If the bullish tone persists we expect a breakout of the level 113.00. A consolidation above the level will favor an advance up to the 114.00 region.