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Forecast for USD/JPY on May 4, 2020

USD/JPY

The US stock index S&P 500 lost 2.81% last Friday, afterwards, the yen strengthened against the dollar (decreased on the chart) by 25 points. The embedded line of the price channel line did not make it possible for the price to go lower.

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The price is trying to overcome this support again in the Asian session. Advancement will enable the price to fall to the first target of 105.10. The Marlin indicator on the negative trend territory (falling).

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The signal line of the Marlin oscillator entered the zone of negative values on the four-hour chart, the price breaks below the blue MACD indicator line, and the subsequent departure of the line at a low of 106.62 Friday is a signal to open a short position while aiming for 105.10. You are advised to set a stop loss above 107.10.

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