The second day, the yen is kept in the range of two lines of the price channel (107.02-107.55). Foreign markets, primarily stock indices, are falling, which continues to put pressure on the pair and increases the likelihood of a price drop to the 102.60 target, determined by the price channel on the daily chart. The Marlin oscillator is staying in the declining trend zone. The S&P 500 lost 4.41% yesterday, while the Nikkei 225 is losing 0.86% today in the Asian session.
A convergence has formed on the four-hour chart according to Marlin, but if a price reduction occurs in the next few hours, then a convergence will not form, the growth of the oscillator will take on the character of an indicator discharge before a further decrease.
If the price drops below yesterday’s low of 106.93, sales may be opened with a target above 102.60, s/l above 107.85.
Overcoming the price of the upper limit of the range does not lead to opening purchases, since the growth rate is uncertain, it ranges from a little above 107.85 (false puncture) to 109.70 – the MACD line on daily, or even higher – up to 109.80, to the MACD line on H4.
The material has been provided by InstaForex Company – www.instaforex.com