On the daily chart, yesterday's white candlestick has swallowed Wednesday's black candlestick, which is one of the signs that the price will rise further. The price also rose above the MACD indicator line and the Marlin oscillator returned to an upward trend.
The pair's growth is based solely on yesterday's optimism for the dollar, but it has a very weak spot - the stock market. US indices did not share dollar optimism: S&P 500 -0.15%, Dow Jones -0.18%, Nasdaq 0.13%. If at the Federal Reserve's next meeting a signal is given about the beginning of the curtailment of incentives, the stock market may not withstand such disappointment and collapse on the massive exodus of investors from it, since it has grown precisely due to these incentives in recent years. With the fall of the stock market, the yen will also strengthen, which will lead to its reaching the target level of 108.35 (May 11 low) rather quickly.
The price also went above the MACD line on the four-hour chart, and in the same price area as on the daily chart, so there is a reason for the price to wait for the Fed meeting above this indicator line. We are waiting for the development of events.The material has been provided by InstaForex Company - www.instaforex.com