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Forecast for USD/JPY on October 21, 2020

USD/JPY

The USD/JPY pair gained yesterday, it even tried to overcome the resistance of the MACD line on the daily timeframe, but the technical resistance turned out to be stronger and the price rolled back from it even with the support of the growing stock market. Today we expect the yen to attack 105.76 again, but there are resistances from another plan. This is the Marlin oscillator's weakness, which has not been able to move into the zone of positive values in the last four days, its signal line is moving sideways along the neutral line.

analytics5f8fab5d97e48.jpg

But there are also positive signs. Marlin is retreating from the decline area on the 4-hour chart. The price is also supported by the balance indicator line.

analytics5f8fab60ebe9f.jpg

The stock market also provides support - the Japanese stock index Nikkei 225 is currently growing by 0.37%, while 24-hour quoted futures on the S&P 500 are adding 0.45%. As a result, we are waiting for the price to overcome yesterday's peak, which automatically means an exit above the MACD line on the daily chart, and further growth to the embedded line of the price channel in the area of 106.20.

A negative scenario will unfold after the price drops below the signal level of 105.20, in which case the price will continue to fall to 104.93.

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