Daily

On the daily chart the yen has formed the last Divergence near the Stochastic indicator. Consequently, the pair dropped towards the correctional level 76.4% - 77.96 of Fibonacci and rebounded towards the US currency. As a result, the rate’s growth continued towards the correctional level 61.8% of Fibonacci; then USD/JPY consolidated above it in the direction of the level of correction 50.0% - 80.09 of Fibonacci. Meanwhile, the Divergence near the CCI indicator is about to appear. If the peak of the indicator is not higher than the previous one, then the rate will be higher than the previous peak (80.37). The formation of such a Divergence enables the rate to turn in favor of the yen. The rebound from the level of correction 50.0% or 38.2% - 81.08 enables the pair to start drop.

4h

On the 4H chart Divergence has not been formed in the recent time. After the rate consolidated above the correctional level 200.0 – 79.78 of Fibonacci, the USD/JPY pair may continue the rate’s growth towards the correctional level 261% - 80.34 of Fibonacci. The rebound from the level of correction 261.8% enables the rate to swing at the yen and start falling. The Divergence at MACD is about to happen; if the current peak of the indicator is not higher than the previous one (Oct. 26), then the price shows the rise above the corresponding peak on the price chart. (80.37). In this case, the pair may swing towards the yen and start down move. Especially if the second point of Divergence is near any level of Fibonacci correction. The rate’s consolidation above 261.8% of Fibonacci enables the pair to continue the upward move towards the next level of correction 323.6% - 80.92.