USD/JPY (a 4-hour chart)
This week traders’ attention will be focused on the Fed meeting where the US interest rates decision will be made. The Bank of Japan meeting is scheduled for October 30 where the regulator will also decide on the country interest rate. Currently, the Japan economy is showing very weak recovery signs and the country inflation rate remains far below the target of 2.0%. If the Fed refrains from the interest rates raising, it could prompt the Bank of Japan to the monetary policy further easing.
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 directed downwards, the Kijun-sen is showing a horizontal movement. 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 decreasing.
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 119.20 and further to 118.40.