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 US Dollar rate against the Japanese Yen is 103.74. Moving averages indicate the presence of a short-term bullish trend for the pair. Prices are re-tested the area between the signal lines, which indicates pressure from the buyers of the US Dollar and a potential continuation of price growth from the current levels. and continued growth of the USD/JPY pair to the area above the level of 104.75.
USD/JPY Forecast Japanese Yen January 26, 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 lower “Head and Shoulders” pattern. Cancellation of the growth option for the Dollar/Yen currency pair will be a fall and a breakdown of the level of 102.95. 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 100.45. With the breakdown of the resistance area and closing of quotations above the level of 104.35, we should expect confirmation of the development of an upward movement in the pair and the beginning of the “Head and Shoulders” pattern.
USD/JPY Forecast Japanese Yen January 26, 2021 implies an attempt to test the support area near the level of 103.45. Then, continued growth of quotations to the area above the level of 104.75. 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 102.95 area. This will indicate a breakdown of the support level and continued fall in the pair with a potential target below 100.45.
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