The USD/JPY pair traded in a 40-point range on Monday, closing the day with a 7-point decline, which formed a consolidation at the Fibonacci level of 110.0%. The signal line of the Marlin oscillator is embedded into the zone of positive values, the price is ready to continue growing. The first target is 106.00 to match the Fibonacci level 100.0% with the MACD line. Next, we are waiting for the price on the inner line of the price channel of the higher (weekly) scale 106.40.
The four-hour chart shows that the signal line of the Marlin oscillator reverses from the border of the downward trend area. This pattern means the end of the consolidation, now we expect the price to reach the first target of 106.00 in 1-2 days.
Setting the price under 105.12 will mean that the price would move according to an alternative scenario, the USD/JPY pair intends to go down to the Fibonacci level of 138.2% at the price of 103.75.The material has been provided by InstaForex Company - www.instaforex.com