For Traders

Analytical Reviews

Technical analysis

05.01.202105:08 Forex Analysis & Reviews: Forecast for USD/JPY on January 5, 2021

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

USD/JPY

Fluctuations in the yen in choosing its path between the fall of the stock market (to follow it and strengthen against the dollar) and the global strengthening of the dollar (to weaken), which we talked about yesterday, took shape in technical outlines this morning.

On the daily chart of the USD/JPY pair, a double convergence with the Marlin oscillator is almost ripe, but the price visually feels comfortable under the resistance of 103.18 and is not averse to going against the convergence with the target at 102.35. Likely to increase until limited by the resistance of the MACD line at the 103.75 level, which tells us about the development of the price in a downward channel until the price settles above this line. Therefore, rising towards 103.75 may bring back the decline.

The trend remains downward on the four-hour chart; the price develops under the balance and MACD indicator lines, while the Marlin oscillator is in the zone of negative values. This chart also suggests that going above 103.18 is not enough for an upward momentum to develop; the price should also surpass the MACD line at 103.30e. In general, we believe that the USD/JPY pair is likely to decline by 60%.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.