The USD/JPY currency pair continues to move as part of a developing correction and the formation of a “Wedge” reversal pattern. At the time of publication of this forecast, the US Dollar to Japanese Yen exchange rate is 156.50. Moving averages indicate a short-term bearish trend for the pair. Prices have broken below the area between the signal lines, indicating downward pressure from US Dollar sellers and potential further price declines from current levels. The Japanese Yen exchange rate forecast for May 8, 2026, anticipates an attempt to continue the decline and a test of the support area near 155.15. Next, a price rebound upward and continued growth of the USD/JPY currency pair to above 158.75.
USD/JPY Forecast Japanese Yen for May 8, 2026
An additional signal in favor of the USD/JPY currency pair’s growth will be a test of the support line on the relative strength indicator. A second signal will be a rebound from the lower boundary of the Wedge reversal pattern. A decline and a breakout of 153.55 will cancel the upward trend of the USD/JPY currency pair. This will indicate a breakout of the support area and continued decline of the USD/JPY currency pair. In this case, we should expect a continued decline below 151.45. Confirmation of the price increase should be expected with a breakout of the resistance level and a consolidation above 156.75, which will indicate a breakout of the upper boundary of the Wedge reversal pattern and the beginning of the pattern’s implementation with targets above.
USD/JPY Forecast Japanese Yen for May 8, 2026 suggests an attempt at a bearish correction with a test of the support zone near 155.15. Then, the bullish momentum in quotes will continue to develop above 158.75. A test of the trendline on the relative strength indicator (RSI) will support the pair’s upside. A decline in quotes and a breakout of 153.55 will cancel out the upward trend. This would indicate a breakout of the support level and continued decline with a potential target below 151.45.
