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 rate of the US Dollar to the Japanese Yen is 104.15. Moving averages indicate a short-term bearish trend for the pair. However, prices broke down 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 8, 2020, we should expect an attempt to develop a fall and a test of the support area near the level of 103.55. Further, the rebound and the continuation of the rise of the USD/JPY pair to the area above the level of 106.05.
USD/JPY Forecast Japanese Yen December 8, 2020
An additional signal in favor of the growth of 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 “Head and Shoulders” pattern. Cancellation of the option to raise the Dollar Yen currency pair will be a fall and a breakdown of the level of 102.75. 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 98.55. With the breakdown of the resistance area and closing of quotations above the level of 105.45, we should expect confirmation of the development of an upward movement in the pair.
Among the important news from Japan that may have an impact on the USD/JPY pair, it is worth highlighting: Japan Gross Domestic Product (GDP) q/q.
USD/JPY Forecast Japanese Yen December 8, 2020 suggests an attempt to test the support area near the level of 103.55. Then, the continued growth of quotations to the area above the level of 106.05. 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 102.75 area. This will indicate a breakdown of the support level and a continued decline in the pair with a potential target below 98.55.
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