FX.co ★ Forecast for USD/JPY on October 25, 2023

USD/JPY:

Apart from the ongoing sideways movement (consolidation below the 150.00 level), not much is happening with the yen. The Marlin oscillator is also moving along the zero line. Evidently, Japanese investors are waiting for the results of the upcoming Federal Reserve meeting next week.

The ongoing prolonged consolidation may accumulate the potential for a quick rise to 151.95, but then there could be an equally quick reversal into a medium-term decline, which we expect next week.

On the 4-hour chart, a bearish reversal is in the works without any signs of a bullish breakout. We can confirm this once the price settles below the MACD line, below the 149.62 level.

The two previous breakouts of this support occurred without consolidation (gray ovals). A consolidation below the line will open the target of 148.50. From a technical perspective, it's easier for the price to consolidate above the resistance level at 150.00. We are seeing a local uptrend.