Forecast for USD/JPY on August 18, 2020

USD/JPY
The Japanese yen sharply accelerated the pace of its strengthening (decline on the chart) after breaking the MACD line on a daily chart. There are about 20 points left to the nearest goal along the 105.45 price channel. The signal line of the Marlin oscillator has entered the negative trend zone, which creates the risk of continuing to pull down the price to the second target of 104.60.

The price has consolidated below the MACD indicator line on the four-hour chart, which also increases the likelihood of overcoming the 105.45 level. But the Marlin oscillator is already entering the oversold zone, which may be a signal for a reversal from the first target level of 105.45.

So: if the price settles below the 105.45 level, we are waiting for the price to fall to the second target of 104.60, consolidating the price above 106.12 will mean restoring growth to 106.70 with a repeated attempt to overcome 107.00.

Analysis are provided by InstaForex