FX.co ★ Forecast for USD/JPY on December 19, 2023

USD/JPY

On Monday, the USD/JPY pair surpassed the target level of 142.70, and this morning, it went below that level. The Marlin oscillator is slightly turning downward, easing from the area close to the oversold territory over the past two days.

The oscillator is still far from being oversold, so increasing corrections are considered as a way of easing tension amid a strong downtrend. We can anticipate the Marlin to make progress within the green descending channel. It appears that the price aims to test the strong target level of 140.35, which crosses the nearest embedded line of the global descending channel.

On the 4-hour chart, the price settled above the level of 142.70 with two candles and quickly returned below it. A similar pattern is forming on Marlin – returning below the zero line after a brief excursion above it. We expect the price to fall through the intermediate level of 141.23 to 140.35.