USD/JPY outlook for December 31, 2021

The USD/JPY gained 16 pips yesterday, formally following the chosen direction since December 6 and technically since December 22, when the price went over the Kruzenshtern indicator line and over the balance indicator line. The Marlin oscillator has also consolidated in positive territory by this time. However, it has now markedly reduced the rate of rising. Of course, this is not a sign of a reversal. It is a warning that the target range of 115.80-116.15 will be reached with a more or less noticeable correction along the way.

On the 4-hour chart there is already a price divergence with the oscillator. This is a direct indication of a delay in growth. The Kruzenshtern line on 4-hour chart will support this correction. Traders are waiting for the target range of 115.80-116.15 by the end of the first decade of January.