Forecast for USD/JPY on October 14, 2021

USD/JPY

The USD/JPY pair dropped 33 points yesterday, probably due to the general weakening of the US currency. Yesterday, the US stock index S&P 500 rose by 0.30%, today the Japanese Nikkei 225 adds 1.07%, the dollar is ready to reach the target of 114.22.

Consolidating above the level of 114.22 may extend the growth to the 115.80-116.16 range, but along this path, technical reversal patterns, for example, divergence, may form with a high degree of probability. Moreover, the nearest opportunity could be when the price reaches the nearest target level. Such a moment can be seen in detail on the four-hour chart:

At the moment, the situation looks like the Marlin Oscillator has discharged from the overbought zone and is ready for forming new highs. It is possible that the struggle for the 115.80-116.16 range is not canceled, but it is recommended to treat this growth with caution.