FX.co ★ Forecast for USD/JPY on January 16, 2024

USD/JPY

The pair reached the area of intersection of the target level of 146.24, the MACD line, and the 50.0% retracement level.

A breakout above this level will likely provoke another rally, but not a strong one, as the pair also encountered strong resistance at the MACD line on the weekly chart.

Only a consolidation above 146.15 can extend the medium-term upward trend to the price channel line around 149.45, or slightly higher to 151.35. Upcoming economic indicators from the US, which will be released tomorrow, may help the market choose a direction.

In the case of a decline below 144.95, the pair will drop to 143.90 and 142.50.

As for an increase, the first target will be the level of 148.35.

On the four-hour chart, the pair consolidated above the balance line, while the Marlin oscillator remained in the positive area. Although the short-term trend appears bullish, market players should remain cautious and wait for the movements tomorrow.

Sellers should take note of the support level of 144.95.