Forecast for USD/JPY on October 5, 2020

USD/JPY

The yen strengthened by 56 points last Friday and reached the lower shadow of support for the trend line of the price channel, afterwards it moved up following the recovery of the stock market. The price continues to rise today in the Asian session, and is also trying to overcome the resistance of the balance indicator line. The Marlin oscillator has moved into a positive trend zone, which it failed to do for the past three days. This is a good sign of the growing market interest in buying the pair. The nearest target is now the Fibonacci level of 100.0% at the price of 106.00. The MACD line is located near this level. Overcoming such strong resistance will open the second target at 106.35.

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The price turned upwards from the MACD line on the four-hour chart. The signal line of the oscillator is ready to enter the growth zone. We are waiting for the price at the first target of 106.00.

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