USD/JPY (a 4-hour chart)
Bullish sentiments prevailed during the trading day. There was the "risk appetite" growth after the Mario Draghi’s statement that the ECB was willing to increase the incentive package at the next meeting in December. Such verbal intervention provoked the quotations growth on the Asian, European and North American stock exchanges. The carry trade operations increase is a negative factor for the Japanese yen as the funding currency. The commodity market sales also contribute to the dollar strengthening.
The price is finding the first support at 120.40, the next one is 119.20. The resistance is at 121.60, the next one is at 122.40.
There is a strong and confirmed buy signal; the pair is above the Cloud. The Tenkan-sen is crossing the Kijun-sen upwards. Two lines give us a “Golden Cross” signal. If the USD/JPY remains above the Cloud the growth will be continued.
The MACD indicator is in a positive territory now. The histogram is growing.
If the pair stays above the Cloud it has all chances to go to the level of 121.60. Otherwise we will see a decrease to 120.40.