Forecast for USD/JPY on July 22, 2021

USD/JPY

Yesterday, the markets showed a desire to return to risk: S&P 500 0.82%, Euro Stoxx 50 1.78%, the yield on 5-year US government bonds increased from 0.685% to 0.738%. As a result, the USD/JPY pair has grown by 45 points. How long optimism will last in the stock market is a big question, we are inclined to believe that it will not be very long, after which the stock indices will go into a medium-term correction.

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In any case, there is a strong resistance in front of the USD/JPY pair at 110.65 - the embedded price channel line and the MACD line, only breaking it opens the target at 111.39 - the high on May 2018.

The Marlin Oscillator is still in the negative zone, the bears are in control.

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The price is higher than the balance and MACD indicator lines on the four-hour chart, the Marlin oscillator is in the growth zone. The price is in a neutral and comfortable range of 109.80-110.65. In this range, the price can survive today's European Central Bank meeting and the period of development of certainty on stock exchanges. The situation is currently not trading.

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

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