USD/JPY
The yen remains the most difficult currency in the last month, its fluctuations occur with a periodic change of drivers - it is the stock market, then the fluctuations of the US dollar. As a result, the yen has been trading in a wide range of 109.55-111.65 for a month and a half. Yesterday, the S&P 500 gained 0.35%, the dollar index rose 0.14%, which has already consistently pulled the USD/JPY pair up 23 points.
Now the price faces the task of rising above the daily MACD line at 110.74, then the way to the target level 111.39 will open. This mark (110.74) also coincides with the central line of the growing lilac price channel, so the subsequent growth may be above the first target level.
The price is struggling with the local target level of 110.40 on the H4 chart. Surpassing it will indicate an attack on the MACD line at 110.64. Consolidating above this indicator line will be a preparation for an attack on the daily MACD line (110.74). To restore the downward movement, the price needs to go below the level of 109.80, which is more difficult to do at the moment.
The material has been provided by InstaForex Company - www.instaforex.com