Quotes of the pair USD/JPY US Dollar to Japanese Yen complete the trading week with a strong fall near the area of 136.87. The pair continues to move within the framework of the development of the decline and the formation of the “Head and Shoulders” reversal pattern. Moving averages indicate a bullish trend. Prices are again testing the area between the signal lines, which indicates pressure from buyers of the US dollar and a potential continuation of the rise. At the moment, we should expect an attempt to develop growth and test the resistance level near the area of 142.85. Then, a rebound down and the continuation of the fall of the pair to the area below the level of 125.85.
USD/JPY Forecast December 19 — 23, 2022
An additional signal in favor of the decline in 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 upper border of the Head and Shoulders reversal pattern. Cancellation of the option to reduce the USD/JPY pair in the current trading week December 19 — 23, 2022 will be a strong growth and a breakdown of the 147.85 area. This option will indicate a breakdown of the resistance area and continued growth of the pair on Forex to the area above the level of 152.65. A confirmation of the fall in the USD/JPY pair will be a breakdown of the support area and closing of the price below the level of 128.05, which will indicate a breakdown of the lower border of the “Head and Shoulders” reversal pattern and the beginning of the pattern with targets below.
Among the important news from Japan that may have an impact on the Japanese Yen, it is worth highlighting: Bank of Japan (BoJ) Interest Rate Decision, Bank of Japan (BoJ) Press Conference.
USD/JPY Forecast December 19 — 23, 2022 suggests an attempt to test the resistance level near the area of 142.85. Where should we expect the pair to continue falling to the area below the level of 125.85. An additional signal in favor of the decline will be a test of the trend line on the relative strength index (RSI). Cancellation of the pair’s fall option will be a strong growth and a breakdown of the level of 147.85. This will indicate a continuation of the pair’s rise with a potential target above the 152.65 area.
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