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Forecast for USD/JPY on August 4, 2021

USD/JPY

Yesterday, the yen continued strengthening against the dollar and overcame the target level of 109.20. The Marlin Oscillator is declining and the price is expected to move towards the target of 108.35, but for this the yen still needs support from external markets, which is now weakening.

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Yesterday, the US stock index S&P 500 gained 0.80%, this morning the Chinese Shanghai Composite added 0.69%, only the Japanese Nikkei 225 lost 0.16%. The dollar index is in a neutral position. Consolidating above 109.20 may lead to growth to the nearest target of 109.80.

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On the four-hour chart, the signal line of the Marlin oscillator continues to develop inside the wedge, the exit from which statistically predominates downward, but due to the reversal of the signal line from its lower border, a double convergence of the price with the oscillator has formed, and this is already a sign of an upward breakthrough.

The result is an uncertain situation, although rather an expectant one. The price movement in either direction can be fast and deep, so investors are in no hurry to get ahead of events. Together with the market, we will also wait.

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