USD/JPY
Yesterday, the USD/JPY pair showed great dynamics, with a growth of 66 points. This is despite the fact that the stock market fell. It was previously noted that this pair is more adjusted with the dollar index than the stock indices. Today, the US dollar is expected to strengthen relative to American retail sales data (January forecast is 1.1%). If so, the price will completely break through the target range of 106.50/65 (September 3 and August 25-26 2020 range). From this range, a correctional pullback is possible. The price can rise further to the range of 107.35/50 based on the main scenario.
The daily chart hints at an upcoming divergence, that is, the price may be delayed for at least a day before it further rises. However, it is also possible that the divergence will not form. So, we will monitor how the situation will unfold.
As for the four-hour chart, there are no signs of a reversal. The only thing that is observed is the market's local calmness, as the Marlin left the overbought zone. Once this indicator fairly declines, it will be ready to make another growth.
The material has been provided by InstaForex Company - www.instaforex.com