FX.co ★ Forecast for USD/JPY on May 31, 2023

USD/JPY

On Tuesday, despite the price briefly staying above the target level of 140.35, it fell below this mark and is now attempting to consolidate below it. The pair is likely aiming for 138.55, which is the line of the price channel.

We expect a reversal and for growth to carry on towards 142.25, the peak of November 21, 2022, or slightly higher (by 20 pips) towards the embedded line of the price channel. The formed divergence indicates that the price is likely to follow this scenario. However, if the price manages to stay above 140.35 without falling, it can reach the 142.25 target faster.

On the four-hour chart, yesterday's decline found support on the MACD line. Now the price is trying to reverse from it and resume the upward movement. The Marlin oscillator may return to the positive area and provide support to the price in the near future. There's a 55% probability of the exchange rate decreasing, and 45% of it increasing.