In our last review of the yen, which was on July 12th, we talked about the descending wedge of the Marlin oscillator on the 4-hour chart being a sign of a reversal of the oscillator and price moving to the upside. But only the oscillator broke out, and sharply at that, while the price fell, conducting a short consolidation below the level of 138.78 and extending its downward movement this morning.
Perhaps this decline will be the final step in forming a convergence, and then a correction may occur. The nearest corrective level is 138.78 – it will correspond to 23.6% according to Fibonacci (see daily chart). Going above it will extend growth to 140.35 (38.2% correction).
Overcoming 140.35 will open the way to attack 142.30 and the MACD line on the daily chart (61.8% Fibonacci correction). However, the correction plan is still weak – on the daily chart, the target is open at 135.10. We are waiting for clarification of the situation.
The material has been provided by InstaForex Company – www.instaforex.com
USD/JPY
In our last review of the yen, which was on July 12th, we talked about the descending wedge of the Marlin oscillator on the 4-hour chart being a sign of a reversal of the oscillator and price moving to the upside. But only the oscillator broke out, and sharply at that, while the price fell, conducting a short consolidation below the level of 138.78 and extending its downward movement this morning.
Perhaps this decline will be the final step in forming a convergence, and then a correction may occur. The nearest corrective level is 138.78 – it will correspond to 23.6% according to Fibonacci (see daily chart). Going above it will extend growth to 140.35 (38.2% correction).
Overcoming 140.35 will open the way to attack 142.30 and the MACD line on the daily chart (61.8% Fibonacci correction). However, the correction plan is still weak – on the daily chart, the target is open at 135.10. We are waiting for clarification of the situation.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: