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Forecast for USD/JPY on July 26, 2021

USD/JPY

This morning, since the session opened, the USD/JPY pair turned down from the resistance reached on Friday of the embedded price channel line of the higher timeframe, indicated on the daily chart.

analytics60fe1ed9d6e4f.jpg

With the price moving above this line, as well as above Friday's high of 110.60, which will also become the breakthrough of the resistance of the MACD indicator line, the price will continue to rise to the target level of 111.39 (high of May 2018), but this is an alternative scenario. Our main plan assumes a price decline towards the bearish target of 109.80, as the price moves under the balance indicator line, that is, it shifts the price mood to the downside, and the Marlin oscillator turns down.

analytics60fe1ee6e8f58.jpg

The Marlin Oscillator has formed a double top on the four-hour timeline - a reversal pattern. The MACD line is moving towards the target level of 109.80, increasing its significance. Then, if the price overcomes it, the movement may continue to 108.35.

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