The Federal Reserve will start their two-days meeting and will publish their decision after the meeting. The central bank is expected to change their policy, but market is still waiting. Bloomberg shows that market expectation for a rate hike in December is 44%.
On the other hand, the Bank of Japan signs that they might launch another monetary stimulus. The sign was even stronger after Shinzo Abe won the election again. Source of Kyodo News said that the Japan government is preparing stimulus package in order to boost Japan economy and anticipate negative effects of Brexit. According to the source, Japan is ready to launch 20 trillion yen.
In short-term analysis, USD/JPY possibly will move downward towards the intraday key support at 105.411. However, the price is already below 20 MA and 50 MA on hourly chart, while stochastic and CCI oversold. Therefore, we might see another pull-back move to within the resistance area at 106.202-106.690. As alternative strategy, watch for bearish signal confirmation on the pull-back move with 105.900 as target and 105.411 in extension, but be careful if the price managed to break above 106.690. In that case, USD/JPY possibly will move up to 106.992-107.481.
Sell bearish signal confirmation on pull-back move to 106.202-106.690; S/L: 106.80, T/P: 105.90 or 105.411