Forecast for USD/JPY on January 8, 2021

USD/JPY

USD/JPY gained 76 points yesterday. The other day we wrote that the yen chooses its direction based on two main factors: the global strengthening of the dollar and the fall of the stock market. The yen made its choice based on the dollar, but yesterday the stock market also grew by 1.48% (S&P 500), which created an enhanced impact on growth.

The daily chart shows that the resistance of the MACD line has been successfully overcome; nothing keeps the price from rising towards the embedded price channel line of the higher timeframe with the target at 104.30. Likely to surpass this line and to rise towards the next target at 105.55. The Marlin oscillator has entered the growth area, the technical outlook is only for short-term growth, which can later strengthen in the medium-term.

The four-hour chart shows rapid growth. The Marlin oscillator is high. With the achievement of the first target of 104.30, a correction with a discharge (decrease) of the oscillator is likely, afterwards we expect growth to continue.