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 103.88. Moving averages indicate a short-term bearish trend for the pair. Prices went down from the area between the signal lines, which indicates pressure from the sellers of the US Dollar and a potential continuation of the fall in prices from the current levels. As part of the forecast for the Japanese Yen rate for December 16, 2020, we should expect an attempt to develop a correction and a test of the support area near the level of 103.20. Further, the rebound and continued rise of the USD/JPY pair to the area above the level of 104.75.
USD/JPY Forecast Japanese Yen December 16, 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 a rebound from the lower boundary of the “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 102.55. 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 100.35. With the breakdown of the resistance area and closing of quotations above the level of 104.35, we should expect confirmation of the development of an upward movement in the pair.
USD/JPY Forecast Japanese Yen December 16, 2020 suggests an attempt to test the support area near 103.20. Then, the continued growth of quotations to the area above the level of 104.75. 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 102.55 area. This will indicate a breakdown of the support level and a continued fall in the pair with a potential target below the level of 100.35.
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