FX.co ★ Forecast for USD/JPY on December 13, 2023

USD/JPY

Under general market pressure, the Japanese yen strengthened by 68 pips yesterday, breaking through the support level at 145.08 with the lower shadow. Tonight, the Federal Reserve will announce its decision on monetary policy, which we anticipate will be soft enough to support the dollar's weakness.

We expect the price at the nearest support of 143.90. Further, the price could move towards 142.70, 141.23, and we anticipate a deep correction from the level of 140.35, as it intersects with the embedded line of the global price channel (marked in blue).

On the 4-hour chart, the price has returned below the MACD indicator line and has settled below it. Accordingly, the previous break above this line was a false signal.

The Marlin oscillator is in the positive territory, so consolidating below 145.08 can bring it back to the downtrend territory.

Consolidation above 146.24 will disrupt the main scenario, opening up the target resistance at 148.35.