The dollar gained 41 points against the yen yesterday, having overcome the resistance of the indicators and the target level of 109.85 on the daily chart. Such a strong movement in conditions when the dollar index strengthened by 0.34% and the stock market fell by 0.34% (S&P 500) does not look proportional.
If correlations return to normal today, we can expect the price to return under 109.85 in the next two days. Formally, the situation is completely upward on the daily chart - the price is above both indicator lines and the Marlin oscillator is steadily rising in the positive area, but the price might not reach the 110.62 target due to investors' expectations of the European Central Bank's meeting on Thursday. It is assumed that the ECB will reduce the volume of purchases of PEPP from 80 billion to 60 billion per month, which will lead to a weakening of the dollar.
On the four-hour scale, the price is also above the balance and MACD indicator lines, the Marlin oscillator is in the upward trend zone, but already shows a downward reversal. If we ignore the fundamental components, the price is in the free roaming range of 109.85-110.62, which does not contribute to making any trading decisions except for waiting for the ECB release.The material has been provided by InstaForex Company - www.instaforex.com