FX.co ★ Forecast for USD/JPY on June 26, 2023

USD/JPY:

Last Friday, the Japanese yen entered the 143.20/80 range and has been consolidating within it until this morning. On the daily chart, a divergence has not yet formed between the price and the Marlin oscillator. Keeping the price within the current range increases the chances of a subsequent decline. If the dollar continues to rise, then after surpassing 143.80, the 144.73 target will just be within reach.

Falling below 143.20 would indicate that the dollar cannot continue to rise without a corrective pause, and the 142.30 target will open up. Moreover, if the price breaches the support level, it would mean a break below the embedded line of the price channel, potentially leading to sideways movement for a few days before further upward movement.

On the four-hour chart, the pair is accelerating its growth. The Marlin oscillator is not yet in the overbought zone, so there is a good chance for the price to reach 144.73 in the near future before the growth loses momentum. As the probability of further growth and correction is roughly equal, the key levels to watch are 143.20 and 143.80.