FX.co ★ Forecast for USD/JPY on January 2, 2024

USD/JPY

After reaching the nearest embedded line of the global price channel on December 28th, the USD/JPY pair started a bullish correction and formed a convergence with the Marlin oscillator on the daily time frame.

This is likely a correction from the entire movement starting from November 13th, originating from the level of 151.95. The question is where it will end. The most powerful and attractive level appears to be the 50.0% level near the target of 146.24. The correction could also stop near the 38.2% level close to the target of 145.08 (the high in June 2022). It's possible that the price may only reach the 23.6% level, but in this case, the correction would take on the form of a sideways trend.

On the 4-hour chart, the price is currently falling below the balance and MACD indicator lines, with the Marlin oscillator in a downtrend territory. That's why, to confirm the price's intention to develop a medium-term correction, it needs to settle above the MACD line, above the 141.82 level. If this doesn't happen, the price may retest the support at 140.35 once again.