USDJYP pair motion forecastThe JPY begins to make attempts to grow and strengthen At the beginning of today's European session, USD / JPY is trading near 107.00, in the lower zone of the rising channel on the daily chart. At the same time, DXY futures remained near the level of 97.12, corresponding to the closing price on 10.06.20.
The pair USD / JPY is trading on 06/18/20 in the zone of strong support levels of 106.70 (the bottom line of the ascending channel on the daily chart), 106.50 (Fibonacci level of 23.6% correction for the pair's fall from the level of 125.65, which began in June 2015).
In the current trading situation, we can assume that the price will increase to around 107.65. At the same time, one should not exclude the option of developing a trading situation with a breakdown of support and a decline in quotations to around 106.45.
The breakdown of these support levels will cause a strengthening of the downward impulse and will direct USD / JPY to the support level of 106.00 (May lows). More distant reduction targets are 104.70 (2018 lows), 102.30, 101.20 (2020 lows). At the same time, USD / JPY remains in the zone below the key resistance levels of 108.10 (ЕМА144 on the daily chart), 108.30 (ЕМА200 on the daily chart). Thus, the downward trend in USD / JPY remains. It is worth noting that as soon as world stock indices again come to a steady decline, for example, due to the second wave of coronavirus, the demand for the yen will increase, possibly even significantly.
