Quotes of the currency pair US Dollar to Japanese Yen USD/JPY continue to move as part of a strong downward correction and a bullish channel. At the time of the publication of the forecast, the US Dollar to the Japanese Yen is 134.82. Moving averages indicate the presence of a short-term bullish trend for the pair. Prices broke through 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 5, 2023, we should expect an attempt to develop a price decrease and test the support area near the level of 134.35. Further, the price bounces up and the USD/JPY pair continues to rise to the area above the level of 139.55.
USD/JPY Forecast for May 5, 2023
An additional signal in favor of the rise of the USD/JPY currency pair will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish channel. Cancellation of the option to lift the Dollar/Yen currency pair will be a fall and a breakdown of the level of 132.65. 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 falling to the area below the level of 130.75. With the breakdown of the resistance area and the closing of quotes above the level of 136.65.
USD/JPY Forecast for May 5, 2023 suggests an attempt to test the support area near the level of 134.35. Then, the continuation of the growth of quotations in the area above the level of 139.55. 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 growth option will be a fall and a breakdown of the area of 132.65. 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 130.75.
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