USD/JPY (a 4-hour chart)
The carry trade trades grew amid pessimism that the US interest rates will be changed this year. That face reduces the "safe haven" yen investments’ attractiveness. On the other hand, the United States continues to disappoint traders with the negative macroeconomic statistics. The ISM service sector index was 56.9% in September, thus having fallen below the annual average.
It is worth noting that earlier this week the price has continued upward movement. However, the last trading day of the observed correction downward movement, with periodic upward movement. Bears managed to overcome the support level of 120.40.
The price is finding the first support at 119.20, the next one is 118.40. The price is finding the first resistance at 121.60, the next one is at 122.40.
There is a weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows horizontal one. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a positive territory. The price is growing.
If the pair keeps growing the level of 121.60 will be the first target.