Demand for the dollar is based on expectations about the December Fed rate hike. The Japanese economic data showed the monetary base growth slowdown in October 32.5% y/y against the earlier 35.1% y/y when it was expected an increase to 36.2% y/y. This message and the Japan stock market growth supported the dollar against the yen for a short time. The market was waiting for the US session, hoping to get guidance from the US statistics and the Fed speeches.
The price is finding the first support at 121.60, the next one is 120.40. The resistance is at 122.40.
There is a strong and confirmed buy signal; the pair is above the Cloud. The Tenkan-sen crosses the Kijun-sen upwards. If the USD/JPY remains above the Cloud the growth will be continued.
The MACD indicator is in a positive territory. The histogram is growing.
The pair wants to test the level of 121.60. As an alternative scenario we will see a decrease to 120.40.