Quotes of the currency pair US Dollar to Japanese Yen USD/JPY continue to move within the correction and the bullish channel. The potential for the formation of the “Head and Shoulders” reversal pattern remains. At the time of the publication of the forecast, the US Dollar to the Japanese Yen is 135.17. Moving averages indicate the presence of a short-term bullish trend for the pair. Prices are again testing the area between the signal lines, which indicates pressure from buyers of the US Dollar and a potential continuation of price growth already from current levels. As part of the Japanese Yen exchange rate forecast for May 11, 2023, we should expect an attempt to develop price growth and test the resistance area near the level of 135.75. Further, the price bounces down and the USD/JPY pair continues to fall to the area below the level of 131.45.
USD/JPY Forecast for May 11, 2023
An additional signal in favor of a decline in the USD/JPY currency pair will be a test of the resistance line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the Head and Shoulders reversal pattern. Cancellation of the option of falling the Dollar/Yen currency pair will be a strong growth and a breakdown of the level of 137.55. This will indicate a breakdown of the resistance area and continued growth of the Dollar/Yen pair. In this case, we should expect the pair to continue to rise to the area above the level of 139.85. With the breakdown of the support area and closing of quotes below the level of 132.55, which will indicate the completion of the formation of the “Head and Shoulders” reversal pattern and the beginning of the pattern with targets below.
USD/JPY Forecast for May 11, 2023 suggests an attempt to test the resistance area near the level of 135.75. Then, the continuation of the fall of quotations to the area below the level of 131.45. In favor of the rise of the pair, a test of the trend line on the relative strength index (RSI) will come out. Cancellation of the fall option will be a strong growth and a breakdown of the area of 137.55. This will indicate a breakdown of the resistance level and continued growth in the pair with a potential target above the level of 139.85.
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