FX.co ★ Forecast for USD/JPY on May 17, 2024

USD/JPY

The USD/JPY pair unexpectedly fell by 270 pips over two days and yesterday's lower shadow hit the support of the MACD line on the daily chart at the point of intersection with the 23.6% Fibonacci retracement level. Afterwards, it also swiftly moved upward.

This morning, the pair broke above the 155.75 level, and the Marlin oscillator returned to positive territory. The next target is the 50.0% Fibonacci level. The price has a good chance of breaching this level, and it will continue to rise towards the 61.8% Fibonacci level at 157.00.

We expect the price to fall to 146.50, so it is crucial to cautiously monitor the pair's upward movement, since a reversal could happen when the price breaches any level, whether it be a Fibonacci level or a target level, though not a strong one, at 158.00.

On the 4-hour chart, the price has almost consolidated above the MACD indicator line, has risen above the 155.75 level, and is approaching 156.03. The Marlin oscillator is trying to enter the positive territory. A bullish trend in the short term. We expect the price to hit the targets of 156.03 and 157.00.