Forecast for USD/JPY on Feb 7, 2020

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USD / JPY

The stock market performed a small miracle this week. On the expectations of an early victory over the Chinese coronavirus, the S & P500 grew 3.73%, setting a new historical record yesterday at 3347.96. Japanese Nikkei225 added 4.10% since the opening of the week, while the dollar against the yen, being a pair dependent on stock markets, increased by 165 points. Currently, the price has overcome the resistance of the MACD indicator and has stopped on the line of the red downward price channel. The price exit above the resistance of the green price channel at 110.22, will direct the price to the range 110.83 / 98, formed by the lows on November 27, 2017, and February 11, 2016.

Such a development of events is now the main scenario, since today, the American data on employment for January with came out with good forecasts. The non-farm employment changed to 163 thousand against the 145 thousand in December, and wage growth of 0.3% against 0.1% a month earlier.

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On a four-hour chart, the price is above the indicator lines, but the Marlin oscillator is sharply falling down. In the presented context, this decrease is interpreted as an indicator discharge before resumption of growth. Fixing the price under the MACD line 109.25 will return the price to a downward trend.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Forecast for USD / JPY on February 7, 2020

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