Forecast for USD/JPY on July 22, 2020
The Japanese yen strengthened by 45 points on Tuesday – investors began to buy it on fears of a new wave of falling stock markets. Stock indexes feel overheated despite seemingly optimistic news from around the world, such as the agreement within the EU on a mutual aid pact, good growth in construction in China, positive tests of coronavirus vaccines. The US stock market closed mixed yesterday: S&P 500 0.17%, Nasdaq -0.81%. Perhaps, investors may prefer to take profits before the US administration meets regarding a new aid package worth 1 trillion dollars.
The price went under the MACD line on the daily chart, the Marlin oscillator is declining in the negative zone. We are waiting for the price at the previously defined goal of 105.63 – on the price channel line.
The four-hour chart shows that the price only turned down from the resistance of the MACD line on the fifth attempt. Yesterday, the price was exactly marked at the signal level of 106.68 and now it has to overcome it for further movement to the goal of 105.63. The Marlin Oscillator is in the negative trend zone, which is also a sign that the price will continue to decline.
The material has been provided by InstaForex Company – www.instaforex.com