Forecast for USD/JPY on December 1, 2020

USD/JPY

The USD/JPY pair rose 23 points on Monday following the general strengthening of the US dollar. It continues to grow today in the Asian session. But the growth of the Asia-Pacific stock markets is more surprising, which are rising well after yesterday's fall in the indices of Europe and the United States. The Japanese Nikkei 225 is up 1.32%, the Australian S&P/ASX 200 is up 1.20%, and Chinese indices are mixed. It seems that Asian markets will not be able to withstand another day of falling markets and will go down together with them. Then the USD/JPY pair will also lose support from this side.

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The yen is currently trading in the range of uncertainty, more precisely, freely roaming the 104.05-104.77 range. The signal line of the Marlin oscillator has entered the growth zone, but in general, it is moving in a narrow range of its own along the trend line (marked with a gray rectangle). We are waiting for the price to go below the lower border of the range and fall to the first target of 103.18. It is possible for it to drop to 102.35.

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The price has gone above the resistance of the MACD indicator line and the balance line, while the Marlin oscillator is at the border of growth and decline trends. Taking the technical situation on the daily chart into account, the observed price exit above the MACD line may turn out to be false. You can open short positions regardless of whether the price continues to rise to the upper border of the uncertainty range or not, with the price subsequently falling below its lower border of 104.05.

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