The USD/JPY pair's intention to move closer to the target range of 115.80-116.15 yesterday was overpowered by falling stock indices; S&P 500 dropped 0.26%, Russell 2000 fell -1.10%, Euro Stoxx 50 -0.02%. The Japanese Nikkei 225 index lost 0.91% in today's Asian session.
On the daily chart, a technical price divergence has formed with the Marlin Oscillator. Exit above the level of 114.46 becomes false. Now the price is heading towards the first bearish target at 113.20 - the price channel line of the weekly timeframe. Overcoming the support will allow the price to attack the MACD line (112.60), and then a promising target of 110.70 opens before the price - the lower embedded line of the price channel.
On the four-hour timeline, the price with the oscillator also formed a divergence. Marlin is already in the negative area, and the price is preparing to attack the support of the MACD line (113.73). Overcoming this line will be the first sign of the realization of the downward potential of the USD/JPY currency pair.
