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 bullish «Wolfe Wave» pattern. At the time of the publication of the forecast, the rate of the US Dollar to the Japanese Yen is 106.00. Moving averages indicate a short-term bearish trend for the pair. Prices are testing the area between the signal lines, which indicates pressure from the sellers of the US Dollar and a potential continuation of the price decline. As part of the forecast for the Japanese Yen rate for August 27, 2020, we should expect an attempt to develop a correction and test the support area near the level of 104.85. Further, a rebound and continued growth of the USD/JPY pair to the area above the level of 107.55 within the model.
USD/JPY Forecast Japanese Yen August 27, 2020
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 the formation of a bullish «Wolfe Wave» pattern. Cancellation of the growth option for the Dollar/Yen currency pair will be a fall and a breakdown of the level of 103.65. 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 falling to the area below the level of 101.85. With the breakdown of the resistance area and closing of quotations above the level of 106.75, we should expect confirmation of the development of an upward movement in the pair.
USD/JPY Forecast Japanese Yen August 27, 2020 suggests an attempt to test the support area near the level of 104.85. Then, the continued growth of quotations to the area above the level of 107.55. A test of the trend line on the relative strength index (RSI) will be in favor of raising the pair. Cancellation of the growth option will be a fall and a breakdown of the 103.65 area. This will indicate a breakdown of the support level and continued fall for the pair with a potential target below 101.85.
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