USD/JPY
The global stock market continues to experience difficulties in rising. Last Friday, the S&P 500 rose 0.33%, while the tech Nasdaq fell -0.06%. This morning, the Japanese Nikkei 225 index is losing -0.07%, while the Chinese China A50 is -0.24%. The Japanese stock market is at the levels of the first week of February and the growth of the USD/JPY pair has been under the threat of a breakdown for a month now.
On the daily chart, the double price divergence with the Marlin oscillator is increasing. The nearest support at 110.52, formed by the price channel line and the MACD indicator line, can be overcome with a 65% probability and the target level of 109.80 will open - the high on May 13.
The remaining 35% is due to the breakdown of the double divergence and further growth to 111.39.
There is a strong divergence on the four-hour time scale, Marlin is already in the negative zone, but the price is even higher than the indicator lines. These indicator lines are near the support at 110.52, which also increases the significance of this level. We follow the development of events.
