Quotes of the currency pair US Dollar to Japanese Yen USD/JPY continue to move as part of the growth and the bullish channel. At the time of the publication of the forecast, the exchange rate of the US Dollar to the Japanese Yen is 109.18. Moving averages indicate a short-term bullish trend for the pair. Prices went up from the area between the signal lines, which indicates pressure from the US Dollar buyers and a potential continuation of price growth from the current levels. As part of the forecast for the Japanese Yen exchange rate for May 18, 2021, we should expect an attempt to develop a correction and a test of the support area near the level of 108.65. Further, the rebound and continued growth of the USD/JPY pair to the area above the level of 111.15.
USD/JPY Forecast Japanese Yen May 18, 2021
An additional signal in favor of raising 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 growth option for the Dollar/Yen currency pair will be a fall and a breakdown of the level of 107.95. 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 a decline in the rise of the pair to the area below the level of 105.45. With the breakdown of the resistance area and closing of quotations above the level of 109.95, we should expect confirmation of the development of a bullish movement in the pair.
Among the important news from Japan, which may have an impact on the USD/JPY pair, it is worth highlighting: Japan Gross Domestic Product (GDP) q/q.
USD/JPY Forecast Japanese Yen May 18, 2021 implies an attempt to test the support area near the 108.65 level. Then, the continuation of the rise in quotations to the area above the level of 111.15. A test of the trend line on the relative strength index (RSI) will be in favor of the pair’s growth. Cancellation of the upside option will be a fall and a breakdown of the 107.95 area. This will indicate a breakdown of the support level and a continued fall in the pair with a potential target below 105.45.
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