The yen was caught up in a complex and difficult range to trade, it is indicated by a gray area on the daily chart. US stock indices also formed a two-week horizontal trend and the current situation for the USD/JPY pair looks uncertain from the technical point of view. The price still needs to gain a foothold over the line of the price channel to continue the growth, on which it is now on the daily chart.
The Marlin oscillator is not in a hurry to leave the declining trend zone, which may eventually turn into a false exit of the price up. The target growth level is 107.77.
To move down the price you need to go below the support of the MACD line at a price of 106.90. In this case, the movement is more predictable – an attempt to work out support at 105.85.
The support of the MACD line is near the price level of 106.85 on the four-hour chart, which almost coincides with the MACD line on the daily chart. This coincidence enhances the significance of the level and increases the reliability of the downward movement if this level is overcome.
Recommendation: do not trade Japanese yen while it is in the range of uncertainty.
The material has been provided by InstaForex Company – www.instaforex.com