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Forecast for USD/JPY on July 21, 2020

USD/JPY

The dollar rose 22 points against the yen on Monday. The price tried to overcome technical resistance on both the daily and four-hour charts, but even the growth of US stock indexes did not help. As a result, the price, as before, remained stuck between the balance and MACD indicator lines on the daily chart. The Marlin oscillator moves horizontally under the border of the growth territory. It is technically easier for the price to choose the upward direction, where the first target is the 107.77 level, but in the event of consolidating under 106.96, where the price channel and MACD lines run, the price may break down to the lower line of the price channel in the 105.63 area.

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The MACD line became an insurmountable resistance for the price on the four-hour chart. This may be a temporary difficulty for the price, but it is also very possible for the price to overcome it soon, since the price is consolidating under this line and there could be a breakout with a subsequent increase in the price.

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In this situation, the price has two signal levels before moving down: 106.96, 106.68. Overcoming the first level will be a signal to attack the second signal level. Overcoming the second opens the specified goal of 105.63.

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