31.03.202105:31 Forex Analysis & Reviews: Forecast for USD/JPY on March 31, 2021

USD/JPY

Yesterday, the USD/JPY pair successfully completed the task of overcoming the target level of 110.37. Now the pair is facing a target at the next embedded price channel line in the 112.80 area. But there are not many chances for the price to pass these two figures on the move, there are many strong record levels along the way.

The 111.39 level catches the eye, the low in October 2018 and the May high of the same year, no less significant level of 112.16. They can be determined by the main resistances on the way to 112.80.

At the same time, growth occurs at the risk of a divergence forming on the daily chart. If the divergence is destined to take place, then, most likely, it will occur precisely from the first level at 111.39.

The price noticeably accelerates the growth on the four-hour timescale. This is a sign of an impending return to a normal course, which is likely to retest the broken line of the price channel at 110.37. In general, we expect growth to the target level of 111.39, from which a deep correction is likely.