USD/JPY Forecast for November 3, 2020

USD/JPY

The yen tried to overcome the price channel line yesterday at 104.83 with the help of a brisk growth of the stock market, but this first attempt failed. However, the Marlin oscillator left its own consolidation on the daily scale of the chart up. Its entry into the zone of positive values with the price fixed above 104.83 may extend the pair's growth towards the Kruzenshtern line to the area of 105.42.

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But such a scenario is highly questionable, since the stock market is most likely to fall after the first data from the US election. As a result, we expect the price to go below the first target level of 104.20 and decline to 103.73 (the top of may 2013).

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Based on the four-hour scale chart, the price is fixed above the balance and Kruzenshtern indicator lines. The Marlin oscillator is in the growth zone but when compared with the situation on the daily chart, it may very well turn out that this increase will be false. This will be confirmed by a decrease in the price under the Kruzenshtern line (104.50), and until then it is recommended not to trade.

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