Quotes of the pair USD/JPY US Dollar to Japanese Yen end the trading week near the 104.70 area. The pair continues to move within the correction and the descending channel Moving averages indicate a bearish trend. Prices moved down from the area between the signal lines, which indicates pressure from US Dollar sellers and a potential continuation of the fall. At the moment, we should expect an attempt to develop a downward correction and a test of the support level near the 103.75 area. Then, a rebound and continued growth of the pair to the area above the level of 108.95.
USD/JPY Forecast and Analysis October 26 — 30, 2020
An additional signal in favor of the growth of the Dollar/Yen pair in the current trading week will be a test of the trend line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the “Triangle” pattern. Cancellation of the growth option for the USD/JPY pair in the current trading week on October 26 — 30, 2020 will be a fall and a breakdown of the 102.45 area. This option will indicate a breakdown of the support area and the continuation of the fall of the pair on Forex to the area below the level of 98.95. Confirmation of the growth in the USD/JPY pair will be a breakdown of the resistance area and closing above 107.45, which will indicate a breakdown of the upper border of the “Triangle” model.
Among the important news from Japan that may have an impact on the Japanese Yen exchange rate, it is worth highlighting: Japan Retail Sales m/m, Bank of Japan (BoJ) Interest Rate Decision, Bank of Japan (BoJ) Press Conference.
USD/JPY Forecast and Analysis October 26 — 30, 2020 suggests an attempt to test the support level near the 103.75 area. Where can we expect the pair to continue to grow to the area above the level of 108.95. An additional signal in favor of the rise will be a test of the trend line on the relative strength index (RSI). Cancellation of the growth option for the pair will be a fall and a breakdown of the level of 102.45. This will indicate a continued decline in the pair with a potential target below the 98.95 area.
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