FX.co ★ remington.kihn | USD/JPY

On the four-hour chart of the USD/JPY currency pair, a bullish candle has currently formed. This happened when the bears were testing the lower breakout of the 4/8 Murray regression channel at the support level of 153.12. Therefore, it can be noted that the bulls are trying to prevent the pair from dropping below the 153 level and are currently holding off the break below the round level of 153.00. From a technical perspective, they certainly have the moral right to do so, as the pair is oversold, indicated by the four-hour Stochastic. However, it is also understood that the quotes remain significantly below the declining 14-period moving average line. Hence, the current rise may already face resistance at the upper boundary of the 5/8 Murray regression channel at 153.91. Moreover, most likely, even without testing this level, the USD/JPY pair will turn south and continue to decline towards the lower channel boundary of the 3/8 Murray regression (152.33) with the aim of breaking below it and updating the minimum set at the end of January this year. The only caveat is that we do not know how today's data from the US will affect the pair, and according to forecasts, they may lead to some strengthening of the US dollar.