Quotes of the pair USD/JPY US Dollar to Japanese Yen end the trading week near the 103.61 area. The pair continues to move within the correction and the downward channel. Moving averages indicate a bearish trend. Prices moved down from the area between the signal lines, which indicates pressure from the US dollar sellers and a potential continuation of the fall. At the moment, we should expect an attempt to develop a fall and a test of the support level near the 102.95 area. Then, the rebound and the continuation of the rise of the pair to the area above the level of 109.45.
USD/JPY Forecast and Weekly Analysis February 1 — 5, 2021
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 breakdown of the upper border of the descending channel. Cancellation of the option to raise the USD/JPY pair in the current trading week February 1 — 5, 2021 will be a fall and a breakdown of the 101.25 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 98.05. Confirmation of the rise in the USD/JPY pair will be the breakdown of the resistance area and the closing of the price above 106.25.
Among the important news from Japan that may have an impact on the Japanese Yen rate, it is worth highlighting: Japan Retail Sales m/m.
USD/JPY Forecast and Weekly Analysis February 1 — 5, 2021 suggests an attempt to test the support level near the 102.95 area. Where can we expect the pair to continue to rise to the area above the level of 109.45. An additional signal in favor of growth will be a test of the trend line on the relative strength index (RSI). Cancellation of the option to raise the pair will be a fall and a breakdown of the level of 101.25. This will indicate a continued decline in the pair with a potential target below the 98.05 area.
