USD/JPY (a 4-hour chart)
The Bank of Japan meeting results about the monetary policy is on the agenda where we observed the inflation expectations decline in the world and Japan is no exception –the ten-year government bond yields are trading with gain of 0.35% that is the lowest level since May 2013. The weak private consumption also puts pressure on the economic growth.
The price exit beyond the downward channel was followed by the US dollar growth for the third consecutive day. The short-term dollar growth against the yen has allowed buyers to break through and consolidate above the strong resistance level of 119.20.
The price is finding the first support at 119.20, the next one is at 118.00. The price is finding the first resistance at 120.40, the next one is at 121.60.
The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement. the Kijun-sen shows a horizontal movement.
The MACD indicator is in a positive territory. The price is growing.
We suppose the pair will go to 120.40 first. Having overcome the first target the price might go upwards to 121.60.