Forecast for USD/JPY on August 31, 2020

USD/JPY

The dollar could not bear the sudden resignation of the Japanese prime minister and fell against the yen by 120 points last Friday. The fall stopped at the embedded price channel line (105.33). The price started to rise this morning. The growth target is the upper embedded line of the price channel in the 106.62 area, but it is difficult for the price to go up there now, the trend has become completely downward on the daily chart: the price is under the balance and MACD lines, Marlin is in the zone of negative numbers. There is a risk that the price will overcome the Friday low and decrease to support the growing price channel to the 104.85 area.

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The price is also below the indicator lines, while Marlin is in a downtrend zone on the four-hour chart. The first sign of growth is when the price moves above 105.95, but this will be the first and not a strong enough sign. The price needs to consolidate above the MACD line (106.30), but this is already close to the target level of 106.62. It remains to wait for the development of events.

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