The quotes of the Dollar Yen USD/JPY Forex currency pair finish the trading week near the area of 108.57. The pair continues to move within the fall and the ascending channel. Moving averages indicate a bullish trend. Prices broke through the area between the signal lines up, which indicates pressure from buyers of the US dollar and the potential continuation of the rise. At the moment, we should expect an attempt to develop a correction and test the support level near the area of 107.35. Then, a rebound and a continuation of the pair's rise to the area above the level of 113.75.
USD/JPY Forex forecast for the week of May 10-14, 2021
An additional signal in favor of the rise of the Dollar-Yen Forex pair in the current trading week will be a test of the ascending trend line on the relative strength indicator. The second signal will be a rebound from the lower border of the bullish channel. Here, a bullish "5-0" pattern is also formed, which implies an update of the maximum. The cancellation of the rise of the USD/JPY pair in the current trading week of May 10-14, 2021 will be a fall and a breakdown of the 106.05 area. This option will indicate the breakdown of the support area and the continuation of the fall of the pair in Forex to the area below the level of 99.05. Confirmation of the rise in the USD/JPY pair will be the breakdown of the resistance area and the closing of the price above the level of 111.75, which will indicate a breakdown of the upper limit of the descending channel.
USD/JPY trading signal for the week of May 10-14, 2021
Important news from Japan, which may have an impact on the Japanese Yen, is not expected, so the pair will continue to move within the framework of technical analysis.
Thus, USD/JPY the Dollar Yen Forex forecast for the week of May 10 — 14, 2021 suggests an attempt to test the support level near the area of 107.35. From where we should expect the pair to continue growing in the area above the level of 113.75. An additional signal in favor of the rise will be a test of the trend line on the relative strength indicator. The cancellation of the growth option of the pair will be a fall and a breakdown of the level of 106.05. This will indicate a continuation of the pair's decline with a potential target below the 99.05 area.