Quotes of the pair USD/JPY US Dollar to Japanese Yen complete the trading week near the area of 115.59. The pair continues to move within the framework of the growth and the rising channel. However, there is potential for a head and shoulders reversal pattern to form. Moving averages indicate a bullish trend. Prices have gone up from the area between the signal lines, which indicates pressure from US dollar buyers and a potential continuation of the rise. At the moment, we should expect an attempt to develop growth and test the resistance level near the area of 116.35. Then, a rebound down and the beginning of the fall of the pair to the area below the level of 109.45.
USD/JPY Weekly Forecast January 31 — February 4, 2022
An additional signal in favor of the decline in the Dollar/Yen pair in the current trading week will be a test of the trend line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the rising channel, as well as from the border of the head and shoulders reversal pattern. Cancellation of the option to fall the USD/JPY pair in the current trading week January 31 — February 4, 2022 will be a strong growth and a breakdown of the 117.65 area. This option will indicate a breakdown of the resistance area and the continued growth of the pair on Forex to the area above the level of 120.85. A confirmation of the fall in the USD/JPY pair will be a breakdown of the support area and the closing of the price under the level of 112.05.
Among the important news from Japan that may have an impact on the rate of the Japanese Yen, it is worth highlighting: Japan Retail Sales m/m.
USD/JPY Weekly Forecast January 31 — February 4, 2022 suggests an attempt to test the resistance level near the area of 116.35. Where should we expect the pair to continue falling to the area below the level of 109.45. An additional signal in favor of the decline will be a test of the trend line on the relative strength index (RSI). Cancellation of the option of the fall of the pair will be a strong growth and a breakdown of the level of 117.65. This will indicate a continuation of the pair’s rise with a potential target above the 120.85 area.
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