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20.10.202106:06 Forex Analysis & Reviews: Forecast for USD/JPY on October 20, 2021

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USD/JPY

Yesterday, the Japanese yen tried to go below the target level of 114.22, but it succeeded only for a short time, the day closed above this level. This morning the price reached a new high in the observed struggle of recent days, but the Marlin Oscillator remains unwavering and declines, keeping the declining scenario in the main one. The first target of the decline is the embedded price channel line of the higher (monthly) timeframe in the region of 113.12.

But this declining scenario has a very strong external obstacle - the rising stock market. Over the past week, the US stock index S&P 500 has grown by 3.88% and is very close to the all-time high of September 2. Ongoing growth in external markets will push the pair to the target range of 115.80-116.15, set by the lows of January and August 2015.

On the H4 chart, the descending variant is supported by the double price divergence with the Marlin Oscillator. If the price moves below the MACD indicator line (113.98), the price will allow the price to deepen the correction to 113.12. The Marlin Oscillator has entered the negative zone, which supports the correctional scenario as the main one.

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