FX.co ★ Forecast for USD/JPY on December 21, 2022

Yesterday, after the Bank of Japan announced that it has decided to expand its target band for long-term government bond yields and increase the volume of bond purchases on its balance sheet, the USD/JPY pair collapsed by 3.79%. The lower shadow of the daily candlestick exactly worked off the support of the monthly chart's embedded price hyperchannel line at 130.58.

Crossing this level of support will make 126.90 the next target. But so far the price (in corrective growth) is headed to the upper line at 133.33. The Marlin oscillator settled in the negative area, it has a decent margin of distance in moving down. We are waiting for the correction to end, an attempt to overcome 130.58 and attempt to break through 126.90.

On the four-hour chart, the price makes a standard correction after a strong movement. The Marlin oscillator is in a hurry to get out of the oversold area, and the higher it rises, the longer it will decrease. The limit of the correction is the nearest resistance of 133.33, but the price may not reach this level.