USD/JPY
Yesterday, the USD/JPY pair failed to resist the dollar's assault within the wide range of the market, which resulted in a decline by 16 points. At the same time, the drop in the stock market for three consecutive days still had an effect on investors' existing urge to purchase some Japanese yen in order to hedge risks.
The divergence has formed in the daily chart. Now, the pair may further decline to support the price channel line of the monthly time frame in the area of 105.27. A price consolidation below this level may continue the downward trend towards the MACD line located at 104.20 area.
As for the H4 chart, the price is still held by the first correction level of 105.66, taken at the local highs on February 5 and 8. The Marlin oscillator is moving sideways along the border of the trend separation. Meanwhile, the MACD line (105.53) is heading to the price channel line of 105.27, from which an upward reversal is likely. This is a confirmation that there is still a strong upward sentiment. Thus, it is recommended to wait for the conditions for further growth to form. The target is set at 106.50/65.
