Forecast for USD/JPY on March 8, 2021

USD/JPY

Last Friday, the USD/JPY pair continued its intensive growth, reaching above the target level of 108.16. Visually, the price will close today with a white candle, but the Marlin oscillator has already reached the overbought zone and is planning a reversal from the upper limit of its own growing channel. This morning came the data on Japan's balance of payments for January, which showed a deterioration in the indicator: 0.647 trillion yen versus December 1.166 trillion and forecasted 1.23 trillion yen. The data, of course, does not contribute to risk appetite (Nikkei 225 adds 0.2% against the background of the Australian S&P/ASX 200 1.20%). But nevertheless, stock indexes are growing and keeping the dollar from a deep correction. It is possible that the correction will not go even under the overcome level of 108.16 (the top of July 1, 2020), so today can be closed with a small black candle. And tomorrow, the growth will continue to the previously defined target of 109.10. From this level, a deeper correction is already likely and the exit of the signal line of the Marlin oscillator from the growing channel will become false, it will return to it later.

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There are no reversal signs on the four-hour chart, only the Marlin slightly decreases with the last three candles growing, but this is still not a trend and not a signal for a reversal. We are waiting for developments. Today, the main factor is time.

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

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