FX.co ★ Forecast for USD/JPY on October 18, 2021

USD/JPY

The USD/JPY pair hit the first target level of 114.22 on Friday. Consolidating above it with confirming indicators' readings will create a reserve for further growth in the target range of 115.80-116.15. The Marlin indicator shows the first sign of a reversal on the daily chart.

But on the four-hour chart, the price has already formed a divergence with the oscillator, which creates the risk of a price reversal. A confirmation of a reversal is when the price settles below the level of 113.12, that is, below the price channel line indicated on the daily chart. As a result, it is advisable to wait for confirmation signals of the USD/JPY pair in one direction or another.

The probability of growth is 45%, the probability of decline is 55%.