Quotes of the currency pair US Dollar to Japanese Yen USD/JPY continue to move within the growth and bullish channel. At the time of publication of the forecast, the exchange rate of the US dollar to the Japanese yen is 136.16. Moving averages indicate the presence of a short-term bullish trend in the pair. Prices broke the area between the signal lines upwards, which indicates pressure from buyers of the US Dollar and a potential continuation of price growth from current levels. As part of the forecast of the Japanese Yen exchange rate for May 16, 2023, a demand for the development of price correction and a test of the support area near the level of 135.35 should be expected. Further, the price bounced upwards and continued growth of the USD/JPY pair to the area above 137.95.
USD/JPY Forecast for May 16, 2023
An additional signal in favor of the growth of the USD/JPY currency pair will be a test of the support line on the relative strength indicator. The second signal will be a rebound from the lower border of the bullish channel. A drop and breakdown of the level of 133.85 will be the cancellation of the growth option of the Dollar-Yen currency pair. This will indicate a breakdown of the support area and the continuation of the fall of the Dollar-Yen pair. In this case, we should expect the pair to continue to fall below the level of 131.45. With a breakdown of the resistance area and the closing of quotations above the level of 136.85.
USD/JPY Forecast for May 16, 2023 suggests a demand for a test of the support area near the level of 135.35. Then, the continuation of the growth of quotations in the area above the level of 137.95. A test of the trend line on the relative strength indicator will favor the rise of the pair. A fall and breakdown of the 133.85 area will cancel the growth option. This will indicate a breakdown of the support level and a continuation of the decline in the pair with a potential target below the level of 131.45.
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