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” pattern, which is clearly visible even from the daily chart of the pair. At the time of the publication of the forecast, the rate of the US Dollar to the Japanese Yen is 113.68. Moving averages indicate a short-term bullish trend for the pair. Prices are again testing the area between the signal lines, which indicates pressure from the US Dollar buyers and a potential continuation of the price growth from the current levels. As part of the forecast for the Japanese Yen rate for December 23, 2021, we should expect an attempt to develop growth and test the resistance area near the level of 114.25. Further, a rebound down and the continuation of the fall of the USD/JPY pair to the area below the level of 110.85.
USD/JPY Forecast Japanese Yen December 23, 2021
An additional signal in favor of the fall of the USD/JPY currency pair will be a test of the resistance line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the ”Head and Shoulders” pattern. Cancellation of the option to drop the Dollar/Yen currency pair will be a strong growth and a breakdown of the level of 115.45. This will indicate a breakdown of the resistance area and continued growth of the Dollar/Yen pair. In this case, we should expect the pair to continue to rise to the area above the level of 117.75. With the breakdown of the support area and closing of quotations below the level of 112.05, which will indicate a breakdown of the lower border of the reversal pattern.
USD/JPY Forecast Japanese Yen December 23, 2021 implies an attempt to test the resistance area near the 114.25 level. Then, the continuation of the fall in quotations to the area below the level of 110.85. A test of the trend line on the relative strength index (RSI) will be in favor of reducing the pair. Cancellation of the fall option will be a strong growth and a breakdown of the 115.45 area. This will indicate a breakdown of the resistance level and a continued rise in the pair with a potential target above the level of 117.75.
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