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 exchange rate of the US Dollar to the Japanese Yen is 106.88. Moving averages indicate a short-term bullish trend for the pair. Prices are still below signal lines, indicating seller pressure. As part of the forecast for the Japanese Yen on October 9, 2019, we should expect an attempt to correct and test the resistance area near the level of 106.05. Further, the rebound and continued growth of the pair USD/JPY to the area above the level of 109.45.
USD/JPY Forecast Japanese Yen October 9, 2019
In favor of the growth of the USD/JPY currency pair, a test of the broken support line on the relative strength index (RSI) will come out. The second signal will be the completion of the formation of the reversal model «Wedge». Cancellation of the growth option for the Dollar/Yen currency pair will be a fall and a breakdown of the level of 105.25. This will indicate a breakdown of the support area and a continued decline in the Dollar/Yen pair. In this case, we should expect continued fall of the pair to the area below the level of 104.05. With the breakdown of the resistance area and closing of quotes above the level of 108.25, we should expect confirmation of the development of the upward movement in the pair.
USD/JPY Forecast Japanese Yen October 9, 2019 implies an attempt to test the support area near the level of 106.05. Then, continued growth of quotations to the area above the level of 109.45. 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 105.25. 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 104.05.