Forecast for USD/JPY on August 5, 2020

USD/JPY

The dollar-yen pair dropped 24 points on Tuesday, which we regard as a technical correction after the previous growth of 230 points in two days. At the moment, the price is supported by the embedded line of the price channel. Pinning it below will open the 104.60 target again. The Marlin oscillator is moving sideways under the border of the growth territory, which can be a kind of consolidation of the indicator before the price increases. The pair's growth is still related to the main scenario.

analytics5f2a270fa0ddf.jpg

The price is near the support of the MACD line (105.40) on the four-hour chart, which, together with the trend line of the daily timeframe, supports the growing scenario as prevalent. Consolidating the price below 105.40 may trigger a downward scenario with the above target at 104.60. But until this consolidation has taken place, we expect growth to the 106.80 target.

analytics5f2a2721b8f36.jpg

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