Quotes of the currency pair US Dollar to Japanese Yen USD/JPY continue to move as part of the correction and the formation of a large “Head and Shoulders” reversal pattern on high timeframes. At the time of the publication of the forecast, the rate of the US Dollar to the Japanese Yen is 113.72. Moving averages indicate a short-term bearish trend for the pair. Prices have broken through the area between the signal lines upward, which indicates pressure from buyers of the US Dollar and a potential continuation of price growth from the current levels. As part of the forecast for the Japanese Yen rate for December 8, 2021, we should expect an attempt to develop a correction and a test of the support area near the level of 113.05. Further, an upward rebound and continued growth of the USD/JPY pair to the area above the level of 115.45.
USD/JPY Forecast Japanese Yen December 8, 2021
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 upper border of the ”Triangle” pattern. Cancellation of the growth option for the Dollar/Yen currency pair will be a fall and a breakdown of the level of 112.05. 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 110.65. With the breakdown of the resistance area and closing of quotations above the level of 114.55, which will indicate a breakdown of the upper border of the downward correction channel.
Among the important news from Japan, which 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, 2021 implies an attempt to test the support area near the 113.05 level. Then, the continued growth of quotations to the area above the level of 115.45. A test of the trend line on the relative strength index (RSI) will be in favor of the growth of the pair. Cancellation of the upside option will be a fall and a breakdown of the 112.05 area. This will indicate a breakdown of the support level and continued fall in the pair with a potential target below 110.65.
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