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FX.co ★ Forecast for USD/JPY on October 20, 2020

Forecast for USD/JPY on October 20, 2020

USD/JPY

The dollar strengthened against the yen by 4 points on Monday, which, with the overall fall of the US stock market by 1.63% (S&P 500), demonstrates the dollar's strong position (or, rather, the weak position of the yen, since the dollar index lost 0.30% yesterday). Today we expect the market to recover, as the forecast for US new home construction for September is expected to rise from $1.416 million to $1.457 million.

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At the moment, the signal line of the Marlin oscillator has entered the growing trend zone on the daily chart. The price also tends to go above the balance indicator line, afterwards the growth potential will increase by 20%. The price is facing resistance from the MACD line at 105.78. Overcoming it opens the way to 106.23. Leaving the area above 106.23 opens the next target at 106.96.

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The price is struggling with the resistance of the MACD line (105.64) on the four-hour chart. Settling in the area above it will become a prerequisite for successfully breaking through the daily line (105.78). The price chooses a growth scenario. Make sure that reserve forces for the USD/JPY pair are available for its execution.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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