USD/JPY
The USD/JPY pair has been rising for the second day after reversing from the support level of 160.40. The Marlin oscillator has turned upward in the positive area, and it seems that the price can reach the target level of 163.85 in a few days. However, the upward movement is weak, as trading volumes decrease day by day.
The uncertainty in the stock market and falling commodity prices could cause the yen to strengthen as a safe-haven asset at any moment. We would prefer to assume that the price is currently consolidating above the 160.40 level. If the pair fails to break below the support of 160.40 and the MACD line (159.57), the bulls will have a more solid basis for moving towards 163.85. Consolidating below the MACD line will be a strong signal for further decline in the medium-term, with the first target at 155.75.
On the 4-hour chart, the Marlin oscillator is developing growth in the positive area. The MACD line is limiting the price's upward movement. If the price can break above the line and consolidate above the July 3 peak of 161.96, then it can rise further. The US CPI for June will be the main event on Thursday. We're waiting for this report to monitor the market reaction.
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