The currency pair US Dollar / Japanese Yen (USD/JPY) prices are continuing within the context of developing a corrective model formation reversal “Head and Shoulders”. At the time of this forecast, the value of USD to JPY is at 143.56. Moving averages indicate a short-term bearish trend for the pair. Prices have broken through an area defined by signal lines downwards, indicating pressure from US Dollar buyers and potential continuation of price growth already from current levels. For the Japanese Yen’s exchange rate forecast on May 23, 2025, it is expected that there will be a development of a bearish correction and a test of the resistance zone near the level of 146.25. Following this, a price bounce downwards and further decline in the USD/JPY pair into an area below the level of 138.75.
USD/JPY Forecast Japanese Yen for May 23, 2025
Additional signals in favor of the decline of the currency pair USD/JPY will be a test of the resistance line on the relative strength indicator. The second signal will be a bounce off the upper boundary of the reversal pattern “Head and Shoulders”. Cancellation of the option for the decline of the USD/JPY currency pair will be a strong rise and penetration of the level 148.75. This will indicate突破the resistance area and continuation of the growth of the USD/JPY currency pair. In this case, we can expect further rising in the range above the level 152.45. Expecting confirmation of price drop should be with a break of support level and settlement of price under the level 142.45, which will indicate突破the upper boundary of the reversal pattern “Head and Shoulders” and start implementing the pattern with targets below.
USD/JPY Forecast Japanese Yen for May 23, 2025 anticipates an attempt at developing a bullish correction with testing the resistance zone near the level of 146.25. Then, continuation of the development of the bearish price impulse to the area below the mark of 138.75. A drop in the pair will be supported by testing the trend line on the Relative Strength Index indicator. Confirmation of the decline option would be a rise and break through the area of 148.75. This indicates a breakout through the resistance level and continuation of the pair’s growth with a potential target above the level of 152.45.
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