USD / JPY pair
Yesterday, the USD/JPY pair lost 35 points, almost reaching the red line of the downward price channel. Today, the dollar is growing even against a fall in Asia-Pacific stock indices: Japanese Nikkei 225 -1.23%, Australian S & P / ASX200 -0.25%, Chinese China A50 -1.02%. This growth of the currency may indicate the strength of the dollar, but it still can not stand the further fall of the stock market. If stocks resume growth in the US session today, we can also note the reversal of the USD/JPY currency pair. Fixing the price above yesterday’s maximum will also correspond to the price going above the green line of the ascending price channel, this will be a sign of further growth to the trend line of 106.46. Furthermore, we can expect growth to the MACD line of daily TF at 107.40.
Convergence on the Marlin oscillator formed on the four-hour chart with the main argument for a reversal in medium-term growth. The signal line of the oscillator is already in the zone of a positive trend. To consolidate, a price exit is needed above the MACD line and the level of 106.46, which we see on the daily chart becomes crucial in this situation.
The material has been provided by InstaForex Company – www.instaforex.com