The quotes of the USD/JPY currency pair continue to move as part of the development of growth and the formation of a “Double Bottom” reversal pattern. At the time of publication of the forecast, the US Dollar to Japanese Yen exchange rate is 143.24. Moving averages indicate a short-term bearish trend for the pair. Prices are again testing the area between the signal lines, which indicates pressure from sellers of the US Dollar and a potential continuation of the fall in prices from current levels. As part of the Japanese Yen exchange rate forecast for January 5, 2024, we should expect an attempt to develop a price correction and a test of the support area near the level of 142.35. Next, the price will rebound upward and continue to grow in the USD/JPY pair to the area above the level of 146.25.
USD/JPY Forecast for January 5, 2024
An additional signal in favor of growth in the USD/JPY currency pair will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the downward channel, which was broken upward by buyers. Cancellation of the growth option for the Dollar/Yen currency pair will be a fall and a breakdown of the level of 140.05. This will indicate a breakdown of the support area and a continuation of the fall of the Dollar/Yen currency pair. In this case, we should expect the pair to continue to decline to the area below the level of 137.45. One should expect confirmation of a price increase with a breakdown of the resistance level and consolidation of the price above the area of 144.95, which will indicate a breakdown of the upper boundary of the Double Bottom reversal pattern and the beginning of a pattern with targets above.
USD/JPY Forecast for January 5, 2024 suggests an attempt to test the support area near the level of 142.35. Then, continued growth of quotes to the area above the level of 146.25. A test of the trend line on the relative strength index (RSI) will support the rise of the pair. Cancellation of the growth option will be a fall and a breakdown of the area of 140.05. This will indicate a breakdown of the support level and a continuation of the fall in the pair with a potential target below the level of 137.45.
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