USD/JPY (a 4-hour chart)
The yen weakened amid the weak retail sales data in Japan. The index fell by 2.3% m/m after a reduction by 0.4% in January. The unemployment rate rose to 3.3% from 3.2%. Akie Abe’s statements, the Prime Minister, were another factor that played against the yen. According to the Prime Minister he does not intend to put off the sales tax increase from 8% to 10%, which is scheduled for next year. However, after Janet Yellen’s speech the quotes dramatically changed their vector and rushed south. Only by the end of the trades the pair slightly increased.
The price is finding the first support at 112.20, the next one is at 111.40. The price is finding the first resistance at 113.00, the next one is at 113.80.
There is a non-confirmed and a weak buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward 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 neutral territory. The price is growing.
The potential growth target is the level 113.00. We do not exclude the falls to 112.20.