This morning the USD/JPY pair reached the resistance of the trend line of the weekly price channel (125.00) for the second time. The price has not yet gone above the level, but most likely it will reach the target level of 125.85 – the high of June 2015, and even slightly go beyond it to the upper line of the green price channel. In this area, a price divergence will form with the Marlin Oscillator, and we expect a reversal and a deep downward movement from it. The first target is the range of price channel lines at 119.57-120.00.
On the four-hour chart, the price is growing briskly above the balance (red) and MACD (blue) indicator lines. The balance line shows the current mood of the players, the MACD line is a medium-term trend relative to its scale. The Marlin Oscillator is trying to get out of its own consolidation (narrow range) up. We are waiting for a slight increase in the USD/JPY pair and a subsequent reversal into a medium-term decline.
