FX.co ★ Forecast for USD/JPY on June 28, 2023

USD/JPY:

The USD/JPY pair has barely managed to break above the resistance level of 143.80, opening up the next target level at 144.73. Two factors hinder the dollar's growth: divergence with the oscillator on the daily chart and investors' fear of intervention by the Bank of Japan, which is ready to support the national currency, as was the case on November 10, 2022 (the dollar fell by 550 points) - the intervention began from the level of 146.40.

For now, the price can safely rise to the first target resistance level at 144.73, and even the divergence will not hinder it. However, a reversal may occur at that level. If the divergence is broken, the pair will continue to rise to the nearest embedded line of the ascending price channel, clearly visible on the weekly chart, with 147.40 as the target.

Intervention is highly likely to occur from that level. If the price falls below the 143.20 level, the next targets will be 142.30 and 140.35.

On the 4-hour chart, the price is steadily rising within the ascending channel (green), and it has consolidated above the resistance level of 143.80. The Marlin oscillator is suppressed, indicating weak growth. For now, we're waiting for the pair to climb towards the 144.73 target.