We expect the "bullish" sentiment predominance for two reasons. The first one is the demand for the "risky assets" that is a negative factor for the Japanese yen as a funding currency. The second reason is the commodity market sales that will support the dollar as the commodity cost is denominated in the US currency. The news from Europe supported the dollar was well. The ECB left the rates unchanged. The Bank may enlarge the stimulating measured this year.
The price is finding the first support at 120.40, the next one is 119.20. The resistance is at 121.60, the next one is at 122.40.
There is a strong and confirmed buy signal; the pair is above the Cloud. The Tenkan-sen is crossing the Kijun-sen upwards. Two lines give us a “Golden Cross” signal. If the USD/JPY remains above the Cloud the growth will be continued.
The MACD indicator is in a positive territory now. The histogram is growing.
If the pair stays above the Cloud it has all chances to go to the level of 121.60. We do not believe that the pair could return to a decrease soon though we do not exclude some short-term bounces down.