21.01.202104:57 Forex Analysis & Reviews: Forecast for USD/JPY on January 21, 2021

USD/JPY

The yen strengthened by 35 points on Wednesday against the background of multidirectional movement of world currencies, which ultimately pulled down the dollar index by 0.03%. The price was kept by the MACD indicator line and the signal support at the January 13 low of 103.54. The Marlin oscillator remained in the zone of positive values; at the moment it is turning to the upside from its own zero line. The growth target is still the embedded price channel line at 104.20. Getting the price to settle below 103.54 may lead the price to a bearish target level of 103.00. But this is still an alternative scenario.

The price settled below both indicator lines on the four-hour chart: below the balance line (red) and the MACD line (blue). This is a sign of a short term downward trend. But it can also be a false pattern, and then the price will quickly return above these indicator lines. This development is supported by the Marlin oscillator, which has been growing since the 15th and was very reluctant to decline yesterday. A confirmation of the price's intention to go up will be when the quote surpasses the MACD line at 103.85.