Forecast for USD/JPY on December 10, 2020

USD / JPY

Yesterday, the yen slightly changed its technical picture. An attempt was made (albeit unsuccessful so far) to test the balance and Kruzenshtern indicator lines. The signal line of the Marlin oscillator went up from its own triangle, which means that if the price does not intend to go up to 104.50 and above, then it converts the triangle into a horizontal range figure, for example, like a rectangle. Obviously, this change is due to the extension of the Brexit negotiations for another three days.

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Based on the four-hour scale chart, the price is fixed above both balance and Kruzenshtern indicator lines. The Marlin oscillator is in the zone of positive values and the price has the opportunity to retry testing the point where the Kruzenshtern line coincides with the trend line of the price channel.

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But we do not think that the price will be able to overcome this strong resistance. In General, we expect a sideways trend for this pair and do not recommend opening positions in either direction. At the end of the sideways movement, we expect the pair to fall to the previously marked target of 103.18.

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