USDJPY has bounced off the 107 price level as expected and we now have a weak bullish signal by the Ichimoku cloud indicator as the tenkan-sen has crossed the kijun-sen. Recapturing 108 will give us another bullish signal with a cloud break out.
Red line - tenkan-sen
Yellow line- Kijun-sen
Green line - Chikou span
In the 4 hour chart we have a weak bullish signal by tenkan-sen crossing above the kijun-sen. It is a weak signal because price is still below the cloud and the Chikou span is below price and inside the cloud. A break above 108 will strengthen the bullish scenario for the 4 hour chart. Support is at 107.50 and bulls need to hold prices above it. Otherwise we could see prices move towards 106 specially if price breaks below 107.
