The quotes of the Dollar Yen USD/JPY currency pair continue to move within the correction and bullish channel. At the time of publication of the forecast, the US Dollar exchange rate against the Japanese Yen is 108.91. Moving averages indicate the presence of a short-term bullish trend for the pair. Prices are again testing the area between the signal lines, which indicates pressure from buyers of the US Dollar and the potential continuation of price growth from current levels. As part of the forecast of the Japanese Yen for May 25, 2021, we should expect an attempt to develop a correction and test the support area near the level of 108.55. Further, the rebound and the continuation of the growth of the USD/JPY pair in the area above the level of 109.65.
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 indicator. The second signal will be a rebound from the lower border of the ascending channel. The cancellation of the growth option of the Dollar Yen currency pair will be a fall and a breakdown of the level of 107.95. This will indicate the breakdown of the support area and the continuation of the fall of the Dollar Yen pair. In this case, we should expect a decrease in the pair's rise to the area below the level of 105.65. With the breakdown of the resistance area and the closing of quotes above the level of 109.20, we should expect confirmation of the development of a bullish movement in the pair.
USD/JPY Dollar Yen Forex forecast for May 25, 2021
Important news from Japan, which may affect the exchange rate of the USD/JPY pair, is not expected, so the pair will continue to move within the framework of technical analysis.
Thus, the USD/JPY Forex forecast for the Dollar Yen on May 25, 2021 suggests an attempt to test the support area near the level of 108.55. Then, the continuation of the rise of quotations in the area above the level of 109.65. The trend line test on the relative strength indicator will be in favor of the pair's growth. The cancellation of the rise option will be a fall and a breakdown of the 107.95 area. This will indicate a breakdown of the support level and a continuation of the fall for the pair with a potential target below the level of 105.65.