USD/JPY
The US dollar gained so much yesterday that even the yen lost to it as an instrument of risk aversion. The yen weakened by 50 points. The main topic of risk was the data on the beginning of the second wave of the spread of the Covid-19 virus, there was a surge in the incidence in the United States, India and Mexico.
The price pierced the embedded line of the price channel of the higher timeframe on the daily chart this morning. The price is facing two choices, to break out of the resistance and continue to grow towards the nearest target 107.77 or turn around and show market participants a new impulse to 105.85. The bullish scenario reinforces the fact that the price is above the MACD indicator line (blue), the Marlin indicator, which is still in the declining trend zone, is fighting for the bearish scenario.
The price is above the MACD line on the four-hour chart, but below the balance line (red indicator). Marlin in the growth zone.
As a result, the situation on the yen looks extremely uncertain, the price even correlated with the stock markets: the S&P 500 showed -2.59% yesterday, Nikkei 225 is losing -1.40% today.
We are waiting for the development of events and certainty in this situation.
The material has been provided by InstaForex Company - www.instaforex.com