On Friday, the USD/JPY pair returned to the 135.38-137.12 trend line range after another false breakout above its upper line of 137.12. Earlier, such false exits were on December 12 and December 6. Monday opened with a downward gap of about 80 pips and despite the high upper shadow of today's candle, that gap has not closed. Maybe the price will reach the bearish target at 135.38 and then go back to 137.12 to close the gap.
As a result, we expect the price to move sideways in the current range of 135.38-137.12 today and tomorrow. Further, according to the main scenario, the price will cross support at 135.38 and move towards the target of 133.33. The Marlin oscillator is in the negative territory, but if the price is still flat, then the oscillator signal line will go along the zero line. Or it will continue its gradual decline in the area of the downtrend, showing us the increasing prospect of an expected fall.
On the four-hour chart, the price has settled under the balance and MACD indicator lines. The Marlin oscillator also looks settled under the zero line. We expect the gap to close and the price to return under these indicator lines. Next, we expect an attack on support at 135.38.
