USD/JPY
The Japanese currency is in a very difficult position; The dollar index fell 0.75% on Monday, while Japan's GDP for the first quarter showed a decline of -0.9% after -1.9% in the fourth quarter, which indicates Japan's official recession, but stock indices were growing. The Nikkei 225 adds 1.88% in the Asian session today. The dollar rose 25 points against the yen on Monday. This morning, the dollar went above the MACD line on the daily chart and is trying to overcome the resistance of the embedded line of the price channel, which, if successful, opens the way for it to rise to 108.30, 109.50, 110.83 (November 2017 low).
The pair's growth in the current conditions will now be seen the yen weakening due to the domestic problems of Japan and the growth of the US stock market.
The situation is completely increasing on the four-hour chart - the price is above the indicator lines of balance and MACD, the Marlin oscillator is in the zone of positive values. Actually, a signal to open purchases will be the price transition above the peak of May 11 (107.78).
The price moving to a low of May 15, 106.88 will be the first sign of a return to the downward trend. The main condition for the decline is the price drift under the price channel line in the region of 106.55.
The material has been provided by InstaForex Company - www.instaforex.com