FX.co ★ Forecast for USD/JPY on July 19, 2024

USD/JPY

Yesterday, the USD/JPY pair pierced the support at 155.75 with the lower shadow of the daily candle and rose above the 156.79 level, pausing at the balance indicator line. The pair gained 116 pips.

As long as the price remains above the support level of 156.79, the yen is likely to move sideways. This is because reaching any significant target of corrective growth is not easier than reaching the target for the medium-term trend—the key corrective target is quite high, at the MACD line around the 159.60 mark. The nearest resistance is the May 29 peak at 157.72.

A triple convergence has formed on the 4-hour chart. Since the oscillator's signal line recently entered the bullish territory, the effect of the convergence continues. If external circumstances work in favor of the dollar in the Japanese market, the price can overcome 157.72 and move towards the MACD line around 158.48.