Forecast for USD / JPY on October 9, 2018


Despite all the efforts, the Japanese yen did not manage to consolidate above the trend line of the upward price channel (114.55), the reason for which was the fall of the stock market in the last 4 sessions. But the strength of the yen is definitely preserved. This is what Marlin's oscillator tells us on the daily timeframe. It still remains in the growth zone, and also, the price has not yet reached the supports of the Kruzenshtern indicator lines and balance. However, in this case, it is not necessary to rely on the line of balance, as it sharply turned down, and it will have time to meet the price somewhere around 111.77, where it can provide effective support.

But in the stock market, the situation is gradually being corrected. Yesterday, Dow Jones was able to even close the day with growth (0.15%), which did not have time to make a wide market (S & P500 -0.04%). The Japanese Nikkei 225 is losing 1.36% today, but only because Japan had a public holiday on Monday, the markets were closed, and all Chinese indices are growing today, Shanghai Composite 0.50%, China A50 0.49%.

To continue the growth of the yen, it is now necessary to overcome the resistance of the Kruzenshtern trend line on H4 in the area of 113.90. The road to the resistance of the price channel at 114.60 will open. Support for the bottom line of the price channel at 112.64 is still the goal of the bears, formally they have not yet lost the opportunity to increase the decline.



The material has been provided by InstaForex Company -