FX.co ★ Forecast for USD/JPY on January 16, 2023

The downtrend of the USD/JPY pair and the rising trend of the Marlin oscillator dragged on in a counter move. Considering the fact that the oscillator is leading, as well as data showing a price reversal following the established trend of the oscillator, I expect the pair to rise, at least into a significant correction from a decline since October 21, 2022.

If we don't run into surprises, the reversal will occur from the nearest support at 127.10, which we can see on the daily chart. The first bullish target will be the nearest enclosed line of the price channel around 129.80. Crossing it opens the way to the next line (133.70), which is close to the MACD indicator line. The MACD line acts as an independent level of support and resistance, if it coincides with any other graphic line that strengthens it.

On the four-hour chart, there is a reversal of the Marlin oscillator. There are no other signs of reversal. But while these signs are forming, the price can still manage to reach the support 127.10.