USD / JPY pair
On Tuesday, the Japanese yen, as a protective asset against European political upheaval, strengthened by 27 points. It reflects the price from the resistance of the downward price channel line on the daily chart. Although, the fall of the pair was relatively small, which nevertheless indicates the strength of the mood for shopping. The dollar has strong positions for the development of further growth relative to the yen, considering the episodic nature of political European events - such as the difficulties and their decisions in Italy's power structures, the impulses of the British prime minister to urgently leave the EU, informational stuff about the imminent reduction of the ECB rate, etc.
However, the current situation is uncertain. The probability of growth and fall is the same. For growth, the price needs to overcome the resistance of the trend line at 106.30, as after 30 points another resistance awaits it in the form of the MACD line at 106.60. Above the price is waiting for the line of the rising price channel at 107.14.
Yesterday, the price stopped in front of the support range on August 27-28 on the four-hour chart. The price is below the blue indicator line of MACD and the Marlin oscillator is in a downward position. Fixing the price under the support range below 105.60 may trigger a fall to the price channel line on a daily scale in the region of 104.70. We are waiting for the development of events.
The material has been provided by InstaForex Company - www.instaforex.com