USD/JPY
Stock indexes fell last Friday, with the release of disastrous data on US employment: EuroStoxx 50 -0.95%, FTSE 100 -1.18%, S&P 500 -1.51%. But the dollar preferred growth against the yen following the general weakening of world currencies. During the development of the global crisis, we are still waiting for a new wave of decline in the USD/JPY pair, but at the moment the price still has a small potential for growth. The first serious resistance is the MACD line on the daily scale chart – 108.90, which the price is already trying to overcome. Success will allow the price to rise to the MACD line on a smaller scale H4 - 109.75. The Marlin oscillator is in the growth zone, which indicates a high probability of further price growth.
Overcoming the upper limit of the trading range 106.95-107.80 will allow the price to stay in it for some time to accumulate forces to break out with the goal of 102.65, determined by the embedded lower line of the price channel.
On the four-hour chart, the price is higher than the balance indicator line, and Marlin is in the zone of positive values in a growing position. With overcoming the resistance of 109.75 along the MACD line, the price could grow even higher, but here the resistance of record levels increases more significantly – there are price consolidations of mid-January and February, March 2019 low, etc, in the range of 109.60-110.30.
So, going over the current day (109.10) opens the target range of 109.60-110.30, purchases are associated with increased risk. It is impractical to open short positions today, since the primary conditions are not ready, even for leading indicators. Today's price fall, if it takes place, will only prepare these conditions.
The material has been provided by InstaForex Company - www.instaforex.com