The currency pair dollar-yen (USD/JPY) quotations continue moving within the framework of developing a strong and descending channel. At the time of this forecast publication, the US Dollar to Japanese Yen exchange rate is at 144.86. Moving averages indicate the presence of a short-term bearish trend for the pair. Prices have broken through the area defined by signal lines downwards, indicating pressure from US Dollar buyers and potential continuation of price growth already from current levels. Within this forecast scenario, on May 20, 2025, it is expected to see an attempt at the development of a bearish correction and testing the resistance area near the level of 146.25. Subsequently, a downward bounce in price and further decline of the USD/JPY pair into the region below the level of 141.45.
USDJPY Forecast Japanese Yen for May 20, 2025
Additional evidence that the currency pair USD/JPY is likely to fall would be a test of the resistance line on the Relative Strength Index (RSI) indicator. Another signal will come from rebounding off the upper boundary of the bear channel. Cancellation of the option for a decrease in the currency pair US Dollar/Japanese Yen would be strong growth and breaking through the level of 148.75. This would indicate a break through the resistance area and continuation of the rise in the USD/JPY currency pair. In this case, we should expect to see further increase in the pair up to the region above the level of 151.25. Expecting confirmation of price decline would be when breaking through support levels and stabilizing price under the level of 143.35, which indicates a break through the lower boundary of the bullish correction channel.
USDJPY Forecast Japanese Yen for May 20, 2025 suggests an attempt to rise in currency pair prices and a test of the resistance area near the level of 146.25. Then, continuation of the bearish momentum in the price region below the level of 141.45. A decline in the pair will be indicated by testing the resistance line on the Relative Strength Index (RSI) indicator. Cancellation of the downward option is a strong rise and breakout above the area of 148.75. This will indicate a break through the resistance level and continuation of the rise on the pair with a potential target above the level of 151.25.
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