Today we will take a look at the USD / JPY currency pair. Due to weakness in the USD, the currency pair managed to return to the support area of 106.85–107.00. On the hourly time interval (H1), you can see the consolidation of quotations in the marked price range. As a result, the return of the currency pair above 107.00 / 05 may indicate a lack of selling activity and a resumption of interest amongst buyers
The main scenario.
The return of the currency pair above 107.05 may indicate a lack of selling activity and a resumption of interest amongst buyers. This bullish scenario remains current until the quotes return to the level of 106.70.
This scenario takes into account the further weakening of the currency pair to the range of 106.30–106.40, and remains current until the quotes return above 107.05.
A further decline in the quotes of the currency pair may occur on the back of USD weakness. Let me remind you that today a report on changes in producer prices from the US will be published. If the figure comes in under analysts’ expectations their maybe additional pressure placed on the currency pair. An unexpected increase in the producer price index or news on further easing of quarantine measures in the United States will help strengthen the USD and the pair as a whole.
The above review is not a direct guide to action, but carries an exclusively recommendatory nature.
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