Forecast for USD/JPY on April 21, 2020

USD/JPY

Yesterday, the Japanese yen made minor fluctuations under the balance line on the daily chart and in the consolidation range of 106.87-108.10. The signal line of the Marlin oscillator is still forming a wedge. The exit from the wedge is most likely to occur downwards.

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Pressure is gradually increasing in foreign markets. Yesterday, the US stock index S&P 500 fell 1.79%, today the Japanese Nikkei 225 is losing 1.34%. The fall of the stock market shifts investor sentiment towards buying a protective yen against the dollar.

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The price is above the balance and MACD lines on the four-hour chart, here the signal level is the support of the MACD line at 107.40, overcoming which will be an early signal for aggressive trading fans to open short positions. A stable signal for a medium-term decline in the pair will be when the price leaves the lower border of consolidation at the 106.87 level. The goal is 102.50, along the nearest line of the price channel of the higher weekly scale.

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