FX.co ★ Forecast for USD/JPY on May 21, 2024

USD/JPY

Yesterday, the dollar dominated over the yen, rising by 60 pips, surpassing the target level of 155.75 and the 50% Fibonacci level (156.03). Now, the price is aiming for the 61.8% Fibonacci level at 157.00.

However, one concerning factor is the Marlin oscillator's weakness. Its signal line has barely entered the positive territory and has already gone sideways. This could repeat the pattern from May 9-15 (marked by a rectangle on the oscillator chart). The price has a good chance of falling, we'll find out whether this will take place from the 157.00 level or the 158.00 level.

On the 4-hour chart, the price has consolidated above the balance and MACD indicator lines, as the Marlin oscillator consolidated in the uptrend territory and continues to rise. Take note that yesterday, the price moved upwards from the MACD line (arrow), so there is a high chance that the price will reach the target level of 157.00.