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 exchange rate of the US Dollar to the Japanese Yen is 109.56. Moving averages indicate the presence of a short-term lateral trend for the pair. Prices pierced the area between the signal lines up, which indicates pressure from buyers. As part of the forecast for the Japanese Yen on February 6, 2020, we should expect an attempt to grow and test the resistance area near the level of 109.95. Further, the rebound and continued fall of the pair USD/JPY to the area below the level of 106.45.
USD/JPY Forecast Japanese Yen February 6, 2020
An additional signal in favor of reducing the USD/JPY currency pair will be a test of the resistance line on the relative strength index (RSI). The second signal will be the completion of the formation of the head and shoulders reversal pattern. Cancellation of the option of falling the currency pair Dollar/Yen will be a strong growth and the breakdown level of 110.60. 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 112.35. With the breakdown of the support area and closing of quotes below the level of 107.60, we should expect confirmation of the development of a downward movement in the pair.
USD/JPY Forecast Japanese Yen February 6, 2020 implies an attempt to test the resistance area near the level of 109.95. Then, the continuation of the fall of quotations in the area below the level of 106.45. 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 area of 110.60. This will indicate a breakdown of the resistance level and continued development of the upward movement of the pair with a potential target above the level of 112.35.
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