Quotes of the currency pair US Dollar to Japanese Yen USD/JPY continue to move as part of a bullish correction and have left the limits of the bullish channel. At the time of publication of the forecast, the US dollar to the Japanese Yen is 114.47. Moving averages indicate the presence of a short-term bullish trend for the pair. Prices are again testing the area between the signal lines, which indicates pressure from buyers of the US Dollar and a potential continuation of price growth already from current levels. As part of the forecast for the Japanese Yen on January 20, 2022, we should expect an attempt to develop a correction and test the resistance area near the level of 115.35. Further, the price bounces down and the USD/JPY pair continues to fall to the area below the level of 112.35.
USD/JPY Forecast Japanese Yen January 20, 2022
An additional signal in favor of the decline in the USD/JPY currency pair will be a test of the downtrend line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel, which was broken down by the sellers. Cancellation of the option of falling the Dollar/Yen currency pair will be a strong growth and a breakdown of the level of 117.05. This will indicate a breakdown of the resistance area and the continuation of the rise of the Dollar/Yen pair. In this case, we should expect the pair to continue rising to the area above the level of 118.95. With the breakdown of the support area and the closing of quotes below the level of 113.05, which will indicate a breakdown of the lower boundary of the next bullish channel, as well as the completion of the formation of the “Head and Shoulders” reversal pattern, which can send the price chart far down.
USD/JPY Forecast Japanese Yen January 20, 2022 suggests an attempt to test the resistance area near the level of 115.35. Then, the continuation of the fall of quotations to the area below the level of 112.35. In favor of the pair’s decline, a test of the trend line on the relative strength index (RSI) will come out. Cancellation of the fall option will be a strong growth and a breakdown of the area of 117.05. This will indicate a breakdown of the resistance level and continued growth in the pair with a potential target above the level of 118.95.
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