USD/JPY remains growth potential to 114.22. But then a recession is likely.
On Tuesday, the USD/JPY pair rose by 29 points, consolidating above the embedded price channel line of the higher weekly timeframe. The Marlin Oscillator accentuated a downward reversal, but the price still has the potential to continue rising to the target level of 114.22 - to the November 2018 high. The support is the price channel line - 113.10. It is possible to overcome this line with a shallow price without losing the rising potential.
On the four-hour scale, the rapidly declining Marlin Oscillator indicates a weakening of the growth potential, however, it will be fully exhausted only when the price goes under the MACD line, below 112.50. While we are waiting for the price to rise to the designated target of 114.22, from which the price may fall to the 110.65 area to the lower line of the price channel on the daily chart under pressure from the stock market.
The material has been provided by InstaForex Company - www.instaforex.com