USD/JPY (a 4-hour chart)
The Fed December interest rates increase is estimated with the probability of 75%. The market's reaction suggests that the probability of the Bank of Japan additional stimulating measures became lower. Nevertheless, the yen is expected to continue weakening against the US dollar as the probability of the Fed December rate growth is a strong driver.
After the rapid growth the pair started its weak downward correction. Not having broken through the resistance level of 123.20 the pair is demonstrating a lateral movement, keeping the likelihood of growth.
The price is finding the first support at 122.40, the next one is 121.30. The price is finding the first resistance at 123.20, the next one is at 123.80.
There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a positive territory. The price is consolidating.
The buyers need to break above 123.20 for a steady growth. The way to the mark 123.80 will be opened after this breakthrough.