As a result of yesterday, the USD/JPY pair fell by only 14 points, but the drop has now reached 65 points in the Asian session. The target level of 111.98 has not been fulfilled, but this is not a prerequisite for market reversals. The signal line of the Marlin oscillator has intensified a downward reversal.
The first obstacle in pulling down the price is the MACD line on the daily chart, at 109.24. Overcoming support opens the target range of 107.02/85 along adjacent lines of the price channel. Consolidation under the bottom line (107.02) opens the way for another four figures to decline, to support the embedded price channel line in the 102.70 area.
The price remains above the indicator lines on the four-hour chart, which will keep the price from a sharp decline in the next day. The signal line of the Marlin oscillator has consolidated in the zone of negative values, this indicates the intention of the trend to continue to move down and further.
The material has been provided by InstaForex Company – www.instaforex.com