The long-term pricing pattern of USD/JPY continues to hold firm. We can see in the chart the ongoing depreciation of the US Dollar against the Japanese Yen. The technicals show a large range bound formation since 2017 with its high at 114.780 and low of 105.111.
Expect to see the USD/JPY continue to decline to test the 105.111 support area. Price action should stabilize around the support area however if the economy continues to trade in fear over Covid19, we can expect to see the USD/JPY fall below the long-term support and towards 100.
We believe the USD will continue to slide on the back of weak Economic numbers from the USA as unemployment increased and average incomes declined, thus affecting the value of the dollar.