Yesterday, the yen decided to stay in the range of the green trend lines of the price channel on the daily scale chart, and today it broke out of this range during the Asian session. Immediate targets are now 126.85, the April 2001 high, and 127.55, the May 1997 high. Target levels are chosen relatively close to the current price due to the continuing divergence between the price and the Marlin Oscillator. Despite the confident exit of the price above the linear resistance, we are waiting for the price to turn into a medium-term strengthening of the yen with a target in the area of 120.10.
The price with the oscillator has already formed a double divergence on the four-hour chart. We are waiting for the price to reverse from the nearest target level of 126.85. The stock market can help the yen, which started to fall yesterday – the US stock index S&P 500 lost 1.21% on Thursday.
Today the markets of Europe and the USA are closed for the Catholic Easter, on Monday Europe continues to rest, while the US has gone back to work. All major events are expected on Monday-Tuesday.