Quotes of the currency pair US Dollar to Japanese Yen USD/JPY continue to move as part of the fall and the rising channel. At the time of the publication of the forecast, the exchange rate of the US Dollar to the Japanese Yen is 108.85. Moving averages indicate the presence of a short-term bullish trend for the pair. However, prices broke through the area between the signal lines down, which indicates pressure from sellers. As part of the forecast for the Japanese Yen on January 31, 2020, we should expect an attempt to reduce and test the support area near the level of 108.45. Further, the rebound and continued fall of the pair USD/JPY to the area above the level of 110.85.
USD/JPY Forecast Japanese Yen January 31, 2020
An additional signal in favor of the growth of 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 boundary of the ascending channel. Cancellation of the growth option for the Dollar/Yen currency pair will be a fall and a breakdown of the level of 107.40. This will indicate a breakdown of the support area and the continued fall of the Dollar/Yen pair. In this case, we should expect continued decline in the pair to the area below the level of 105.35. With the breakdown of the resistance area and closing of quotes above 109.65, we should expect confirmation of the development of the upward movement in the pair.
Among the important news from Japan, which may affect the USD/JPY rate, it is worth highlighting: Japan Retail Sales m/m.
USD/JPY Forecast Japanese Yen January 31, 2020 implies an attempt to test the support area near the level of 108.45. Then, continued growth of quotations to the area above the level of 110.85. 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 area of 107.40. This will indicate a breakdown of the support level and continued development of the downward movement of the pair with a potential target below the level of 105.35.
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