Forex Analysis & Reviews: Forecast for USD/JPY on January 16, 2023

The declining trend of the USD/JPY pair and the rising trend of the Marlin oscillator dragged on in a counter move. Taking into consideration the fact that the oscillator is leading, as well as historical data, showing a price reversal following the established trend of the oscillator, I expect the pair to rise, at least a significant correction, from the entire decline since October 21, 2022.

If there are no surprises, the reversal will occur from the nearest support at 127.10, which we can see on the daily chart. The first growth target will be the nearest enclosed line of the price channel around 129.80. Crossing it opens the way to the next line (133.70), which is close to the MACD indicator line. The MACD line acts as an independent level of support and resistance, if it coincides with any other graphic line, reinforcing it.

On the four-hour chart, there is a reversal of the Marlin oscillator. There are no other signs of reversal. But while these signs are forming, the price can still manage to reach the support 127.10.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Analysis are provided by InstaForex

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