The USD/JPY pair went up by 30 points yesterday following the growth of the US stock market but this morning it is again declining. This decline will probably be not so deep in the near future as the Marlin oscillator on the daily scale chart is consolidating in a narrow range (marked with a gray rectangle). A sign of the completion of consolidation will be the exit of the signal line of the oscillator from the range down (according to the main scenario), which approximately corresponds to the price of 104.20, which coincides with the minimum on July 31. The nearest target in this case will be the level of 103.75. For the development of an upward movement, the oscillator's exit from the range up will not be enough as the price must also go above the price channel line above the 104.83 mark.
According to the four-hour chart, yesterday's growth was delayed by the Kruzenshtern line. In order to form a signal to decrease, the Marlin must go below the line forming the double convergence. Visually, this transition will correspond to a price decrease also below the level of 104.20. so, in the corridor 104.20/83, the price will determine its further strategy.
The material has been provided by InstaForex Company - www.instaforex.com