Fundamental analysis

Forecast for USD/JPY on October 26, 2022

The USD/JPY pair fell by 105 points yesterday, but this movement was under pressure from the rest of the market (the dollar index lost 1.00%), so it’s impossible to speak about the price’s intention to turn into a medium-term weakening, even if the price divergence with the oscillator intensifies.

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Moreover, the signal line of the oscillator has the risk of an upward reversal from the zero line. For now, we can hope for the price to overcome the nearest support at 147.52 and reach the lower level around 145.55. The MACD line is approaching this level. If growth develops, the first target will again be the price channel line around 150.00.

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The price is developing between the support at 147.50 and the MACD line on the four-hour chart, which tends to the resistance at 150.00. The range of uncertainty is wide, but it is created by investors’ worries about tomorrow’s European Central Bank meeting and even more about the elections to the US Congress, after which, if the Democrats lose, the stock market could collapse, and with it the USD/JPY pair.

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


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