Forecast of the currency pair USD / JPY
Today we will examine the USD / JPY currency pair. Pay attention to the quotes of the pair attempting to overcome the narrow technical area of support 106.95-107.00. With the opening of trading in Asia, the activity of sellers has increased markedly, but they still cannot break through the marked support.
The main scenario.
A Breakdown of the pair to 106.95–107.00 will allow us to expect a decrease to 105.70 - a local target for sellers.
Buying remains in the high-risk area, so looking at the signals in the long direction is dangerous. At the same time, the appearance of a false breakdown and a quick return of quotes above 106.95–107.00 will indicate a weakness of sellers, thereby increasing the risk of corrective growth to 107.30 and further to 107.85.
The bearish scenario can be realized provided that the USD continues to weaken, as well as an increase in the demand for safehaven assets. Let me remind you that during the American trading session there will be no important macroeconomic publications, therefore the focus will be on the appearance of comments and statements regarding the state of the US economy and the duration of the quarantine.
The above review is not a direct guide to trading, and can only be classed as a recommendation
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