Forecast for USD/JPY on July 10, 2020

USD/JPY

The US stock market fell by 0.56% (S&P 500) on Thursday, the yen followed it, losing five points. Investors were probably not quite ready for the stock market to slip, so the decline in the yen is moderate on the internal desire of investors to still buy the USD/JPY pair, because the dollar itself is strengthening. However, consolidating the price under the MACD line (106.95) on the daily chart may change the nature of the market to the opposite – the yen will fall to support the embedded price channel line in the area of 105.74. The Marlin oscillator has been in the negative trend zone for more than a week.

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The price is pinned under the balance and MACD indicator lines, Marlin is in the negative zone, the intention of the price to go below 106.95 is clear, but the moment is critical, so you should wait for the price to actually consolidate under the specified level. Afterwards, you can open short positions on the pair.

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An exit of the price over the MACD line, above 107.40, will send the price back to the level of 107.77. This will be an even more powerful attack on the price of it than it was in the first decade of July.

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