Quotes of the currency pair US Dollar to Japanese Yen USD/JPY continue to move as part of the correction and the bullish channel. At the time of the publication of the forecast, the exchange rate of the US Dollar to the Japanese Yen is 109.63. Moving averages indicate a short-term bullish trend for the pair. However, prices broke through the area between the signal lines downward, which indicates pressure from the sellers of the US Dollar and a potential continuation of the decline in prices already from the current levels. As part of the forecast for the Japanese Yen rate for August 20, 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 112.45.
USD/JPY Forecast Japanese Yen August 20, 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 upper border of the ”Triangle” 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 106.05. With the breakdown of the resistance area and closing of quotations above the level of 111.25, which will indicate a breakdown of the upper border of the ”Triangle” model.
USD/JPY Forecast Japanese Yen August 20, 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 112.45. 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 upside 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 106.05.
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