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20.05.2021 05:01 AM
Forecast for USD/JPY on May 20, 2021

USD/JPY

The USD/JPY pair rose by 33 points yesterday due to the overall strengthening of the greenback – the US dollar index added 0.45%. But the pair has a serious counterweight - the decline in stock markets. Yesterday, the S&P 500 was down 0.29%. But the fall of the indices, which began on May 10, did not happen in a smooth manner, while there is no confidence in a major correction, so the dollar feels more or less confident against the yen. A more pronounced fall in stock markets will pull the yen along with it.

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On the daily chart, the price has reached the balance indicator line, but has not yet surpassed the target level of 109.37, the high on March 15. A sign of a possible growth is the reversal of the Marlin oscillator from the zero line (arrow), but there is also a strong resistance in the form of the MACD line ahead. The range of uncertainty for the pair, thus, expands to 108.35-109.97. But even a movement above the upper limit of the range does not solve the problem, because the strategically important resistance of the trend lines of the price channels in the range of 110.45/55 is higher.

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The price is below the indicator lines on the four-hour chart, the Marlin oscillator has not yet crossed the border of the growth area. Formally, the situation is declining. But all these frequent signals are created within the uncertainty range of 108.35-109.97.

You are advised to refrain from trading the currency pair in question.

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