Forecast for USD/JPY on August 19, 2020

USD/JPY

The dollar-yen pair fell by 58 points on Tuesday, having reached support for the embedded line of the price channel. The signal line of the Marlin oscillator is in the negative trend zone, but it is already showing the first signs of a reversal. Given the increased interest in risk in the stock markets (S&P 500 set a historical record of 3,395 yesterday), the yen might not move towards the 104.60 target and leaving support may turn out to be false, as it was on August 5-6 (highlighted by a gray oval). If the price settles above 105.45, we expect the pair to grow to the upper target of 106.70.

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The Marlin oscillator begins to turn up on the four-hour chart. To continue moving, the price needs to gain a foothold above the 105.45 level. The MACD line in the 106.15 area could be an obstacle for the price to rise to the 106.70 target on the daily chart, where it can grow before meeting the price. Overcoming this resistance will give the dollar additional strength.

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