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 rate of the US Dollar to the Japanese Yen is 106.82. Moving averages indicate a short-term bearish trend for the pair. Prices are testing the area between the signal lines, which indicates pressure from US Dollar sellers and a potential continuation of the price decline. As part of the forecast for the Japanese Yen rate for July 24, 2020, we should expect an attempt to develop a fall and a test of the support area near the level of 106.60. Further, a rebound and continued growth of the USD/JPY pair to the area above the level of 107.75.
USD/JPY Forecast Japanese Yen July 24, 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 the completion of the formation of the «Head and Shoulders» reversal pattern. Cancellation of the growth option for the Dollar/Yen currency pair will be a fall and a breakdown of the level of 106.45. 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 105.05. With the breakdown of the resistance area and closing of quotations above the level of 107.65, we should expect confirmation of the development of an upward movement in the pair.
USD/JPY Forecast Japanese Yen July 24, 2020 suggests an attempt to test the support area near the level of 106.60. Then, the continued growth of quotations to the area above the level of 107.75. 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 106.45 area. This will indicate a breakdown of the support level and continued development of a downward movement in the pair with a potential target below 105.05.
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