FX.co ★ Forecast for USD/JPY on July 29, 2020

USD/JPY

The Japanese yen strengthened, that is, dropped 26 points on the chart on Tuesday. The short-term correction we expected took place; it was limited by the downward embedded price channel line. Now the target for the decline is the 104.60 level.

The price consolidated below the target level of 105.15 on the four-hour chart, the lower target at 104.60 is open, but now there is a bit of hindrance to the double convergence on Marlin. Strong trends are able to reverse divergences with indicators, if only there is a corresponding fundamental factor that postpones the correction. Today, such a factor may be the Federal Reserve's decision on monetary policy.