Forecast for USD/JPY on August 12, 2020

USD/JPY

The dollar-yen pair became yesterday's leader, gaining 53 points. The price stopped in the target range of 106.60/80. The resistance is complex - the MACD line and the embedded price channel line of the higher timeframe are in this range.

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A strong exit of the Marlin oscillator into the zone of positive values gives the price vigor and optimism in overcoming the specified resistance range. When the price breaks above its upper border at 106.80, the nearest target at 107.00 will open. Reaching the next target of 107.35 is fraught with difficulties, since there was a two-week consolidation in the 107.00/35 range from July 9 to 23. The currency pair needs strong external support to overcome it - the growth of the US stock market. But it was not in the best shape yesterday, with the S&P 500 falling 0.80%.

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The trend is fully upward on the four-hour chart: the price is above the indicator lines, Marlin is in the growth zone. We are waiting for the price to rise. And the stronger the stock market grows, the easier it is for the yen to fulfill the growth target at 107.00 and 107.35.

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