Quotes of the pair USD/JPY US Dollar to Japanese Yen complete the trading week near the area of 108.58. The pair continues to move within the framework of a strong fall and the formation of the «Head and Shoulders» reversal pattern. Moving averages indicate a bullish trend. However, prices broke through the area between the signal lines down, indicating pressure from sellers of the US dollar. At the moment, we should expect an attempt to develop a bullish correction and a test of the resistance level near the area of 110.70. Then a rebound and continued fall of the pair to the area below the level of 104.05.
USD/JPY Forecast and Analysis March 2 — 6, 2020
A test of the trend line on the relative strength index (RSI) will be in favor of the fall of the Dollar/Yen pair. The second signal will be a rebound from the lower boundary of the ascending channel. Cancellation of the fall of the pair USD/JPY in the current trading week March 2 — 6, 2020 will be a strong growth and a breakdown of the area of 112.55. This option will indicate a breakdown of the resistance area and continued growth of the FOREX pair to the area above the level of 114.65. A confirmation of the fall in the USD/JPY pair will be a breakdown of the support area and closing below 107.05, which will indicate the completion of the formation of the «Head and Shoulders» model.
There is important news from Japan that may have an impact on the Japanese Yen, so the pair will continue to move as part of a technical analysis.
USD/JPY Forecast and Analysis March 2 — 6, 2020 implies an attempt to test the resistance level near the area of 110.70. Where can we expect the pair to continue to fall below 104.05. An additional signal in favor of reducing will be a test of the trend line on the relative strength index (RSI). Cancellation of the fall option will be a strong growth and the breakdown level of 112.55. This will indicate a continued rise of the pair with a potential target above 114.65.
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