Quotes of the currency pair US Dollar to Japanese Yen USD/JPY continue to move as part of the correction and the formation of an inverted “Head and Shoulders” reversal pattern. At the time of the publication of the forecast, the rate of the US Dollar to the Japanese Yen is 110.48. Moving averages indicate a short-term bearish trend for the pair. The prices have broken the area between the signal lines upwards, which indicates the pressure from the buyers of the US Dollar and the potential continuation of the rise in prices already from the current levels. As part of the forecast for the Japanese Yen rate for August 11, 2021, we should expect an attempt to develop a decline and test the support area near the level of 109.25. Further, the rebound and the continuation of the rise of the USD/JPY pair to the area above the level of 111.45.
USD/JPY Forecast Japanese Yen August 11, 2021
An additional signal in favor of raising 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 curtain of the reversal pattern. Cancellation of the option to raise the Dollar/Yen currency pair will be a fall and a breakdown of the level of 108.25. This will indicate a breakdown of the support area and the continuation of the fall of the Dollar/Yen pair. In this case, we should expect the pair to continue to decline to the area below the level of 105.45. With the breakdown of the resistance area and closing of quotations above the level of 111.15, which will indicate the completion of the formation of the “Head and Shoulders” reversal pattern.
USD/JPY Forecast Japanese Yen August 11, 2021 implies an attempt to test the support area near 109.25. Then, the continuation of the rise in quotations to the area above the level of 111.45. A test of the trend line on the relative strength index (RSI) will be in favor of the growth of the pair. Cancellation of the rise option will be a fall and a breakdown of the 108.25 area. This will indicate a breakdown of the support level and continued fall in the pair with a potential target below 105.45.
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