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Forecast for USD/JPY on May 29, 2023

USD/JPY:

The USD/JPY pair has surpassed the target level of 140.35. If there are no obstacles, the price will try to climb to 142.25 (the high of November 21, 2022), where the embedded line of the global price channel is also located.

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The emerging divergence on the daily chart can surface at any moment, and reaching the target level (140.35) can be a starting point for it. The likelihood of a decline will decrease if the price stays above 140.35 at today's close. If the price settles below this level, the nearest lower line of the price channel around 138.55 becomes a corrective target.

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On the four-hour chart, there is also a divergence forming. Here, the supportive MACD line at 139.15 is seen as a warning. Overall, the situation leans more towards a short-term correction. We are waiting for further developments.

The material has been provided by InstaForex Company - www.instaforex.com

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