[DAILY NOTION] DailyForex - USD/JPY Forecast - Oct 20, 2020

There is no doubt that the movement of the USD/JPY around and below the 105.00 support still confirms the extent of the bears’ control on the performance. The pair does not care about the technical indicators reaching oversold areas, but the greater concern is the extent of investor risk appetite.

More economic restrictions to contain the coronavirus outbreak, investor disappointment from speeding up the stimulation of the U.S. economy, and the darkening of the scene regarding the presidential elections, all will be in the interest of strengthening the Japanese yen, and therefore support levels at 104.90, 104.00 and 103.45, may be the next targets in the current downward path.

On the upside, I still see that there will be no shift to the current trend without testing the 108.00 resistance.

The performance of the USD/JPY currency pair will focus today on the announcement of the trade balance figures in Japan, the reaction to the Chinese economic data, and then the upcoming statements of Federal Reserve Governor Jerome Powell.

Source: https://www.dailyforex.com/for...