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 105.23. Moving averages indicate a short-term bearish trend for the pair. Prices broke the area between the signal lines downward, which indicates pressure from the sellers of the US Dollar and a potential continuation of the fall in prices from the current levels. As part of the forecast for the Japanese Yen rate for October 16, 2020, we should expect an attempt to develop a correction and test the resistance area near the level of 105.75. Further, the rebound and the continuation of the fall of the USD/JPY pair to the area below the level of 104.05.
USD/JPY Forecast Japanese Yen October 16, 2020
An additional signal in favor of the fall of the USD/JPY currency pair will be a test of the resistance line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the ascending channel. Cancellation of the option to drop the Dollar/Yen currency pair will be a strong growth and a breakdown of the level of 106.25. This will indicate a breakdown of the support area and continued growth of the Dollar/Yen pair. In this case, we should expect the pair to continue to rise to the area above the level of 107.75. With the breakdown of the support area and closing of quotations below the level of 104.75, we should expect confirmation of the development of a downward movement in the pair.
USD/JPY Forecast Japanese Yen October 16, 2020 implies an attempt to test the resistance area near the 105.75 level. Then, the continuation of the fall in quotations to the area below the level of 104.05. A test of the trend line on the relative strength index (RSI) will be in favor of reducing the pair. Cancellation of the fall option will be a strong growth and a breakdown of the 106.25 area. This will indicate a breakdown of the resistance level and continued growth for the pair with a potential target above 107.75.
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