Quotes of the currency pair US Dollar to Japanese Yen USD/JPY continue to move as part of the correction and the formation of the «Head and Shoulders» reversal pattern. At the time of the publication of the forecast, the exchange rate of the US Dollar to the Japanese Yen is 106.34. Moving averages indicate the presence of a short-term downtrend for the pair. As part of the forecast for the Japanese Yen on August 22, 2019, we should expect an attempt to reduce and test the support area near the level of 105.25. Further, the rebound and continued growth of the USD/JPY pair to the area above the level of 108.95.
USD/JPY Forecast Japanese Yen August 22, 2019
In favor of the growth of the USD/JPY currency pair, a test of the rising support line on the relative strength index (RSI) will come out. The second signal will be the formation of an inverted model «Head and shoulders». Cancellation of the growth option for the Dollar/Yen currency pair will be a fall and a breakdown of the level of 104.75. This will indicate a breakdown of the support area and the continued fall of the Dollar/Yen pair. In this case, we should expect continued decline in the pair to the area below the level of 103.55. With the breakdown of the resistance area and the closing of quotations above the level of 107.65, we should expect confirmation of the development of growth for the pair.
USD/JPY Forecast Japanese Yen August 22, 2019 implies an attempt to test the support area near the level of 105.25. Then continued growth of quotations to the area above the level of 108.95. In favor of the growth of the pair, a test of the trend line on the relative strength index (RSI) will come out. Cancellation of the rise option will be a fall and a breakdown of the area of 104.75. This will indicate a breakdown of the support level and continued development of the decline in the pair with a potential target below the level of 103.55.