Forecast for USD/JPY on May 13, 2020

USD/JPY

Yesterday's assumptions about the decline in stock markets were justified. The American S&P 500 index lost 2.05%, today, the Japanese Nikkei225 index declined by 1.15%, and the Chinese China A50 by 0.67%. The USD/JPY currency pair declined after the stock market by 52 points. The price appeared between two nearby lines of the price channel again, continuing to form a downward sloping consolidation. The signal line of the Marlin oscillator, with the exception of a slight "breathing indicator", moves along the border that separates the decline from the zone of falling trends. Now, moving the price below the lower line of the range 106.60 for the second time (hopefully, a more successful one) will launch the strengthening of the yen in the medium-term. The first goal here is the level of 105.10, followed by 103.95.

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The trend continues to increase on the four-hour chart: the price is above the indicator lines and Marlin is in the growth zone. The first attempt to attack the level of 106.60 will be pushing down the quote below the MACD line at 107.00. Perhaps, this will happen with the synchronous departure of the Marlin oscillator in the zone of negative values, which will strengthen the signal.

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An alternative scenario is the growth of the dollar against the yen, which will open with the price reaching the top of Monday 107.78 and consolidating above this level. In case that the growth of the currency pair is confirmed by the growth of stock indexes, we should expect the price at the resistance of the upper line of the price channel at 111.50.

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