Yesterday, the USD/JPY pair saw a slight increase influenced by the dollar's broad strength and, importantly, by the rise in the stock market. The pair stopped rising at the resistance level of 143.60. The signal line of the Marlin oscillator has already moved into the positive area, but there is still a chance for the line to reverse from the border with the growth territory. If the price breaks above Monday's high, there will be a chance to reach the upper boundary of the price channel (144.74).
The main scenario is bearish, as we continue to expect a more profound decline in stock indexes. In particular, we expect the S&P 500 to reach the August 5th low of 5089.41. The nearest target for the yen remains the same – the range of 139.70-140.27. In the 4-hour chart, the Marlin oscillator turns from the zero line synchronously, with the price reversing from the resistance of 143.60.
A consolidation above 143.60 will allow the price to work towards the MACD line at 144.24. Overcoming this line will enable the price to climb to 144.74. But regardless of whether the price reaches 144.74, we expect it to enter the target range of 139.70-140.27.
