FX.co ★ Forecast for USD/JPY on April 8, 2021

USD/JPY

In yesterday's review, we expected that if the price settled around the 109.37 level, the price would continue to decline to the target level of 108.40. But the consolidation went higher, around Tuesday's low. The technical picture suggests two options for the development of the downward scenario:

A - the price to fall to the 109.37 level and another consolidation to form on it, similar to yesterday's formation, which will form a technical pattern "base under the base", which is a pattern for continuing the trend (in our case, a downward one, and the target will be the 108.40 level).

B - the price to quickly surpass the 109.37 level, and an upward reversal is possible here without reaching the 108.40 target, that is, a false breakout of the 109.37 level.

The reversal scenario has one development option - reaching the 109.37 target level and turning it to the upside in line with the general strengthening of the US dollar.

Thus, the current situation is not certain, but ultimately it is conducive to the pair's growth. The targets are the same: 111.39, 112.16 (peak in March 2019).

The Marlin oscillator is already in the negative zone on the daily chart. But these values are still small and in the future it can be transformed into a false entry into the negative area. Settling in the area below 109.37 according to plan "A" will situationally confirm Marlin's desire to move down without false movements until the price has reached the target level of 108.40.

We are waiting for the development of events. Opening positions in any direction, as you can see, is associated with increased uncertainty and risk.