USD/JPY
Yesterday, amid the weakening of the US dollar, the fall of the Chinese stock market, the USD/JPY pair fell by 43 points, which corresponds to the strengthening of the yen by 0.42%. The current position of the national currency is quite satisfied with the Bank of Japan, since the price is in the long-term sideways range of 107.49-112.22, which took shape in the summer of 2017. Except for a few special cases when the price left this range. The longest episode was in the second half of last year due to a pandemic.
In today's Asian session, the Chinese stock market lost more than 1.5%, the Japanese Nikkei 225 -1.65%, the unemployment data in Japan in June showed a decline from 3.0% to 2.9%, and industrial production grew by 6.2 % m/m. The yen has all the conditions for attacking the dollar. The nearest target is 109.20, then the pair may continue to decline to 108.35.
The price is dropping below both indicator lines on the four-hour chart, the Marlin oscillator is converging with the price, but at the same time it has already formed a triangle as a continuation pattern for the current trend. There may be a short sideways movement of the price and the oscillator before the further expected decline.
The material has been provided by InstaForex Company - www.instaforex.com