Forecast for USD/JPY on November 3, 2022

After yesterday's Federal Reserve rate hike by 0.75%, the dollar index rose by 0.54%, but the yen strengthened by 0.35%. We believe that the efforts of the Japanese authorities to attract investment to the country are beginning to show, and the yen is also slowly returning to the status of a safe-haven currency from turmoil in world markets. The S&P 500 was down 2.50% yesterday.

Japan's balance of payments has been depressed for the past four months, balancing on the zero line. The August figure was 0.059 trillion yen, while in March it was 2.55 trillion yen. We believe that the September indicator, published next week, will show a more significant increase.

For the development of a medium-term strengthening, the price must overcome the support of 145.50, which is approaching the MACD line of the daily scale. Settling below the level opens the way to 141.55. The Marlin Oscillator helps the price with all its strength.

The price settled below the level of 147.50 on the four-hour chart. The price is preparing to overcome the support of the balance line, and the Marlin Oscillator is already in negative territory. We are waiting for further downward movement.