USD/JPY (a 4-hour chart)
The Japan retail sales rose by 1.6% y/y in July, still the growth by 1.1% y/y was expected. Last month the unemployment rate was 3.3%, which is 0.1% lower than in June and below economists' expectations by 3.4%. Household spending declined by 0.2 % in July with the price correction after a decrease by 2.0% in June. Economists had expected an increase by 1.0%.
The pair shows the dollar’s strengthening. The resistance level of 121.60 was tested.
The price is finding the first support at 120.40, the next one is at 119.20. The price is finding the first resistance at 121.60, the next one is at 122.40.
The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement and form a “Golden Cross”.
The MACD indicator is in a neutral territory. The price is growing.
We recommend going long with the first target – 122.40. When the price consolidates above the first target it may go to the level of 123.50.