FX.co ★ Technical Analysis of USD/JPY for January 21, 2021

• The trend of USD/JPY pair movement was controversial as it took place in the downtrend channel. Due to the previous events, the price is still set between the levels of 104.01 and 103.03, so it is recommended to be careful while making deals in these levels because the prices of 104.01 and 103.03 are representing the resistance and support respectively. Therefore, it is necessary to wait till the downtrend channel is passed through. In the H1 time frame, the level of 104.01 is expected to act as major resistance today. Currently, the price is moving in a bearish channel. This is confirmed by the RSI indicator signaling that we are still in a bearish market. The price is still above the moving average (100) and (50). Then the market will probably show the signs of a bearish market. In other words, sell deals are recommended below the price of 104.01 with the first target at the level of 103.03 . From this point, the pair is likely to begin an descending movement to the price of 102.61 with a view to test the weekly support at 102.19.

Forecast :

• If the pair fails to pass through the level of 104.01, the market will indicate a bearish opportunity below the strong resistance level of 104.01. In this regard, sell deals are recommended lower than the 103.03 level with the first target at 102.61. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 102.19. However, stop loss has always been in consideration thus it will be useful to set it above the last double top at the level of 104.41 (notice that the major resistance today has set at 104.41).

Daily key levels :

• Major resistance: 104.80
• Minor resistance: 104.41
• Pivot point: 103.51
• Minor support: 102.61
• Major support: 102.19

Comment

• - The trend is still calling for a strong bearish market from the spot of 104.01.
• - Sellers are asking for a high price (104.01).
• - Please check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated.