FX.co ★ Forecast for USD/JPY on February 7, 2023

Yesterday, the Japanese yen lost 146 points on news about the next Bank of Japan governor as current BOJ Governor Haruhiko Kuroda is set to leave his position on April 8. Deputy Governor Masayoshi Amamiya, a traditional dove on the Board, was reportedly approached to be the next BOJ head.

On the daily chart, the resistance of the MACD indicator line stopped the pair's growth.

The opening of the week occurred with a gap, and it is still not closed. The Marlin oscillator is turning down, so it is more likely that the price will close the gap and reach the support at 130.00, rather than continue rising to the target at 133.70. All chart lines are embedded lines of the global hyperchannel of the monthly chart with its beginning from September 2012.

Overall, however, the price is trying to reverse the downtrend that reached its lowest point on January 16, so the 137.60 target looks achievable in the medium-term.

We can see the intention to close the gap on the four-hour chart, but only the reversal of the signal line of the oscillator confirms this intention, which is still not enough for us to make a trading decision. The decline will probably have a complex form (saw-toothed).