USD/JPY (a 4-hour chart)
The Bank of Japan monetary policy meeting results was the main event of the day. It was the monetary regulator first meeting after Japan fell into the technical recession. The low wage growth constrains household spending. The Japanese currency growth against the US dollar to 2.16% in the third quarter contributed to the exports decline which increased the trade deficit.
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.
The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Golden Cross”.
The MACD indicator is in a neutral territory. The price is correcting.
We expect the 123.20 line break that will open the way for the buyers to 123.80.