Quotes of the currency pair US Dollar to Japanese Yen USD/JPY continue to move as part of the correction and the formation of an inverted “Head and Shoulders” reversal pattern. At the time of the publication of the forecast, the US Dollar against the Japanese Yen is at 103.90. Moving averages indicate a short-term bullish trend for the pair. testing the area between the signal lines, which indicates pressure from buyers of the US Dollar and a potential continuation of price growth from current levels.As part of the forecast for the Japanese Yen on January 28, 2021, we should expect an attempt to develop a correction and test the support area near the level of 103.75. a rebound and continued growth of the USD/JPY pair to the area above the level of 105.55.
USD/JPY Forecast Japanese Yen January 28, 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 103.05. 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 100.95. With the breakdown of the resistance area and closing of quotations above the level of 104.55, we should expect confirmation of the development of an upward movement in the pair and the beginning of the “Head and Shoulders” pattern.
Among the important news from Japan that may affect the rate of the USD/JPY pair, it is worth highlighting: Japan Retail Sales m/m.
USD/JPY Forecast Japanese Yen January 28, 2021 implies an attempt to test the support area near the 103.75 level. Then, the continued growth of quotations to the area above the level of 105.55. 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 103.05 area. This will indicate a breakdown of the support level and continued fall in the pair with a potential target below 100.95.
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