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Forecast for USD/JPY on January 16, 2020

USD / JPY

The dollar against the yen suspended growth in front of the strong linear resistance of the price channels - upward (green) and downward (red). The price is supported by the MACD presented in a blue moving line at a price of 109.62. Yesterday the S&P500 grew 0.19%, and today Nikkei225 is adding only 0.08%, if the stock market does not rise in today's retail sales data then the correction may go deeper into this line. In general, potential growth remains. Overcoming the red price channel line at 110.25 opens the way for the price to the target range 110.83 / 98, to the Fibonacci level of 123.6%.

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On the four-hour chart, the growing potential looks strong. The price is above the lines of balance and MACD, the Marlin oscillator is in the decline zone, but can easily go into the growth zone. Weak divergence may already be worked out.

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The critical level that unfolds the trend is 109.29, which is October 30's maximum and the MACD line of a four-hour scale is located at the same level.

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