Forecast for USD/JPY on October 18, 2024

On Thursday, the USD/JPY pair rose slightly, supported by the rise in stock indices. However, this growth shows signs of exhaustion for both the yen and the stock market. A triple divergence with the Marlin oscillator has formed on the daily chart, and the price is compressed within a narrow wedge.

A similar wedge has also formed on the S&P 500 chart. As a result, a price consolidation below 149.38 could trigger a decline in the pair towards the 143.60 level, which aligns with the approaching MACD line. Today's positive data on China's industrial production for September failed to sustain yesterday's market optimism (China A50 -0.26%).

On the H4 chart, the price is prepared to attack the support level at 149.38, while the Marlin oscillator is prepared to move into the decline territory. A synchronized shift of the price and the oscillator below their respective boundaries could provide the momentum for a downward movement.