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Forecast for USD/JPY on October 22, 2020

USD/JPY

US stock indices are in disarray - on the one hand, they want to grow on the strengthened hopes that the White House and Congress will accept a very large package of second aid to the markets, on the other hand, investors doubt that this bill will be passed before the elections.

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The S&P 500 stock index lost 0.22% yesterday, the yen strengthened (decreased on the chart) by 90 points, unable to overcome the resistance of the MACD line on the daily chart a day earlier. The price has broken through the support of the embedded price channel line at 104.93, and now it is aiming for the nearest target at 103.75. The price will probably retest 104.93 before this target is reached.

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The price is completely in a downward trend on the four-hour chart, with all indicators pointing to a decline. The Marlin reversal is of a short-term nature - easing before declining further.

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