The forecast for the Japanese yen rate is written in the early morning of 01/28/2021, during the Japanese session, during the increased liquidity for the currency pair.
Current quotes USD / JPY - 104.3 yen per dollar.
The currency pair has broken through the long-term downtrend line, which means an attempt to reverse the medium and long-term trend in the Japanese yen.
The resistance level for USD JPY is the upper border of the Ichimoku cloud, level 104.4. Also, it was at this mark that the trend line was broken.
The support level for the yen rate USD/JPY is 103.3. This is followed by the absolute minimum in 2021 - 102.6.
If the support level of 104.4 is broken, the USD/JPY rate will tend to the level of 106 yen per dollar. In this case, we have before us one of the classic market reversal models among professional traders, according to the method of Victor Sperandeo.
There are 2 almost guaranteed opportunities for traders to make a profit. The first is an upward movement of more than 200 points, after which you should take profit and open sell positions.
The second opportunity for making a profit is the fall in the rate of the USD/JPY currency pair by 250-300 points, from the level of 106.
You should open buy positions on USD / JPY in case of a short-term rollback in the current upward correction.
Thus, the forecast for the yen rate USD / JPY for January 28 assumes a short-term pullback and a subsequent continuation of the upward trend in the yen, with a target of 106 for this week.