USD/JPY (a 4-hour chart)
We expect important events for this week that reflected on the yesterday's pair dollar/yen trading. In this case, besides the FOMC meeting results, investors are waiting for more solutions with the similar Japan’s meetings (where the monetary policy destiny is decided) and in a given situation investors decided to correct position and fix some profits that led to the dollar decline against the Japanese yen.
The trade is in the upward direction within the Japanese yen. The corrective price decline for three days is observed without the volume support.
The price is finding the first support at 107.60, the next one is at 107.10. The price is finding the resistance at 108.50.
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 horizontal movement and the Kijun-sen shows an upward movement. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a positive territory. The price is correcting.
The upward bounce potential target are 108.00, 108.50.