Forecast for USD/JPY on August 4, 2020

USD/JPY

The Japanese yen met yesterday's extremes with technical resistance: the upper shadow is the resistance of the balance indicator line, the lower shadow is the support of the embedded price channel line. This fact enhances the value of active technical instruments, therefore, we are waiting for the attack at the resistance of the upper line of the price channel at 106.85.

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Slightly below the level is the MACD line (blue indicator), which is an independent resistance level, but taking into account the rapid growth of the signal line of the Marlin oscillator, which, according to visual assessment, will enter the zone of positive values before the price approaches the MACD line, one should expect it to be overcome. Also, the price will try to gain a foothold above the trend line (106.85), where it may linger for a short while in the consolidation range of July 10-23. The range is highlighted in a gray area on the daily chart.

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The price reversed upward from the MACD line on the four-hour chart. Marlin in the growth zone. We are waiting for the price to reach the 106.85 level and the subsequent consolidation above it.

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