FX.co ★ Forecast for USD/JPY on March 10, 2020

USD/JPY

On Monday, the US stock index showed the largest daily collapse in the last 12 years: Dow Jones -7.79%, S&P500 -7.60%, Russell2000 -8.97%. But already this morning, Asian markets are recovering: Australia's S&P/ASX200 +1.27%, China's China A50 +0.02%, Japan's Nikkei225 -1.67%. S&P500 futures are up 2.17%. This means that the US market will open higher today.

The USD/JPY currency pair, which is sensitive to stock market movements, is also growing. The price is clearly headed for closing the gap, respectively, we expect the price to rise above the resistance of the embedded line of the price channel at 105.23, probably to 105.43 – by the top of January 2014. Fixing the price above the level of 105.43 will allow the price to continue the corrective growth to the embedded line of the price channel in the area of 107.13.

According to the four-hour chart, the Marlin oscillator exits the oversold zone, helping the price to complete the nearest task of closing the gap. The MACD line is approaching the level of 105.43, thus increasing its importance. Failure of the price to gain a foothold above the indicated level may return the USD/JPY pair to a downward trend.