Quotes of the currency pair US Dollar to Japanese Yen USD/JPY continue to move as part of the correction and the downward channel. At the time of the publication of the forecast, the rate of the US Dollar to the Japanese Yen is 103.58. Moving averages indicate a short-term bearish trend for the pair. Prices are again testing 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 already from the current levels. As part of the forecast for the Japanese Yen rate for December 29, 2020, we should expect an attempt to develop a bullish correction and test the resistance area near the level of 103.65. Further, the rebound and the continuation of the fall of the USD/JPY pair to the area below the level of 102.35.
USD/JPY Forecast Japanese Yen December 29, 2020
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 descending channel. Cancellation of the option to drop the Dollar/Yen currency pair will be a strong growth and a breakdown of the level of 104.05. 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 106.85. With the breakdown of the support area and closing of quotations below the level of 102.95, we should expect confirmation of the development of a downward movement in the pair and the beginning of the development of the “Triangle” model.
USD/JPY Forecast Japanese Yen December 29, 2020 suggests an attempt to test the support area near the level of 103.65. Then, the continued growth of quotations to the area above the level of 102.35. 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 104.05 area. This will indicate a breakdown of the support level and continued fall for the pair with a potential target below 106.85.
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