Forecast for USD/JPY on Mar 18, 2020

analytics5e71a6c4b1860.jpg

USD/JPY

The US dollar rose by 180 points against the Japanese yen yesterday due to the growth of stock indexes by 5-9%. This evening, the Federal Reserve’s FOMC will officially announce easing measures at its scheduled meeting – describing in more detail the plan to buy back government and corporate bonds on its balance sheet. Financial easing measures can increase investors’ interest in risk, respectively, and the growth of the USD/JPY pair. But while the crisis has not been overcome and investors have not yet evaluated the effectiveness of the proposed measures, we consider the growth of the markets as corrective. For the USD/JPY pair, the nearest correction target is the MACD line on the daily scale chart of 109.00.

However, the signal line of the Marlin oscillator found strong resistance from the zero line – the boundary separating the growth zone from the downward trend zone. This technical circumstance creates the risk of a downward trend reversal, that is, the completion of the correction at the current levels. In this case, the target will be the price channel line at 102.78. The growth condition will be the exit of the price above the upper line of the price channel (and above yesterday’s high) 107.87.

analytics5e71a6d7bf39d.jpg

In case of a downward scenario, the intermediate support will be the MACD line on the four-hour chart in the 104.70 area.

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

Source:: Forecast for USD/JPY on March 18, 2020

About the Author
InstaForex brand was created in 2007 and at the moment it’s a top choice of more than 2,000,000 traders. More than 1,000 clients open accounts with InstaForex every day. All InstaForex clients get great opportunities for effective trading on the forex market, as well as on-time technical and customer support

Related Posts

Leave a Reply

*