The yen opened the new week with a large gap of more than 60 pips. It might close at 132.20, which was the March 30 low. Monday's shocker was the OPEC+ announcement to cut oil production by 1.16 million b/d, which sent the oil price up 5.8% from the opening session.
After the gap closes, USD/JPY is headed up to 134.18. A consolidation above the level might extend the rise to 138.18. The Marlin oscillator is trying to quickly make up for the losses and move into positive territory. With that, it will help the price with the growth.
On the four-hour chart, the price and the oscillator have formed a divergence. Its potential is enough for forming a correction with a subsequent reversal signal for growth. I expect such a signal and the price to rise to 134.18 with an attempt to surpass the level.
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