USD/JPY
The USD/JPY pair has reached an important target that we have repeatedly mentioned in recent weeks – the embedded line of the global price channel. Here's how it looks on the weekly chart:
A reversal divergence is forming with the Marlin oscillator. Or the Marlin has converged into a technical wedge. A divergence is also brewing on the daily chart. There's a high probability of a reversal.
The initial bearish target is the 145.90 level, and it is approaching the MACD line. Consolidating below this level would indicate that the pair will move towards a decline (strengthening of the yen) in the medium-term.
There is a divergence on the 4-hour chart. Here, the MACD line may rise to around 146.33 before it meets the price, which could be close to the peaks of August 21-22. So, the first target is the 145.90-146.33 range.
