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04.05.202205:35 Forex Analysis & Reviews: Forecast for USD/JPY on May 4, 2022

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The yen is moving strictly sideways for the third day. This is partly due to the May national holidays: Constitution Day, Greenery Day, etc. But today the US Federal Reserve raises the base rate, so we expect the dollar to strengthen against other world currencies. The bulls' target levels for the USD/JPY pair are the embedded lines of the price channel of the monthly timeframe: 131.11, 132.38. The Marlin Oscillator continues to decline in its own descending channel, we are waiting for its upward reversal. The exit of the signal line of the oscillator from the channel up will be a sign of a medium-term price increase.

The price moves sideways on the four-hour scale, yesterday it touched the MACD line. The lateral movement can be stopped and the price will continue to grow. The Marlin Oscillator is moving along the zero line, ready for any development of events.

Leaving the area under the support level of 129.41 (April 20 high) cancels the growth scenario. Possible decline to the target level of 126.95 – to the April 27 low. The reason for this movement may be a strong fall in the stock markets after the Federal Reserve's FOMC rate hike, which the USD/JPY pair will no longer be able to resist.

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