Forecast for USD/JPY on August 1, 2023

USD/JPY

The Bank of Japan unexpectedly purchased 300 billion yen worth of government bonds yesterday in order to maintain low yield on long-term debt securities. This led to yen weakening by 0.86%.

On the daily chart, the price approached a strong resistance formed by three lines: the target level at 142.82, the MACD line, and the embedded line of the price channel. A slight rebound may occur from this area, after which there will be a new and successful attempt to break through it. If the price consolidates above 142.82, the next target would be 144.73, with further potential growth towards 145.90. The Marlin oscillator being in the positive territory indicates a tendency for further price increases.

A strong upward movement can be seen in the four-hour chart. There may be a rebound towards the support at 141.96 (July 21 high), followed by a resumption of the upward trend. The Marlin oscillator, continuing to rise, will likely withstand corrective declines without moving into the negative zone when the price falls.