FX.co ★ Forecast for USD/JPY on October 5, 2023

USD/JPY

The Japanese yen significantly strengthened on Monday, reportedly due to the Bank of Japan's intervention. At the moment, the price has breached the support level at 148.50 and is preparing to move below the 147.97 price channel.

Breaking Monday's low of 147.39, which would also automatically breach the MACD line, opens up the target at 145.90. The signal line of the Marlin oscillator, after breaking out of its own downward channel, has now returned to it. The signal line has also crossed the boundary into the territory of the downtrend.

On the 4-hour chart, the signal line of the oscillator has sharply moved down from an extended consolidation. Marlin is now developing a downward move. So, we are waiting for the price to breach the local support levels at 147.97 and 147.39. We expect the pair to sharply fall on Friday, with the release of, as anticipated, weak US employment data.