Forecast for USD/JPY on July 29, 2020

USD/JPY

The Japanese yen strengthened, that is, dropped 26 points on the chart on Tuesday. The short-term correction we expected took place; it was limited by the downward embedded price channel line. Now the target for the decline is the 104.60 level.

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The price consolidated below the target level of 105.15 on the four-hour chart, the lower target at 104.60 is open, but now there is a bit of hindrance to the double convergence on Marlin. Strong trends are able to reverse divergences with indicators, if only there is a corresponding fundamental factor that postpones the correction. Today, such a factor may be the Federal Reserve's decision on monetary policy.

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