Trading Signal for USD/JPY for May 10-11, 2023: sell below 135.50 (21 SMA – 200 EMA)
May 10, 2023 2:22 pm
USD/JPY is moving higher after hitting a low of 133.50. It is currently trading around the key 135 level. We may see some consolidation as the market is waiting for US inflation data to be released in the next hours.
In the next few hours, it is expected that there will be a consolidation due to the fact that speculators could refrain from opening aggressive positions. Investors will be looking forward to the release of the latest US consumer inflation figures, which will be released today.
Soft inflation data is negative for the US dollar, so it could benefit the upward move in USD/JPY and the pair could reach the 7/8 Murray level around 135.93. The evidence of a slowdown in US inflation could strengthen the Japanese yen and it could fall towards levels of 134.14. Moreover, if the instrument breaks this level, the price could fall towards 5/8 Murray located at 132.81.
According to the 4-hour chart, we can see the formation of an uptrend channel since April 13. The Japanese yen is expected to find strong resistance around the 135.50 level. In case this level breaks, we could expect a bullish acceleration and USD/JPY could reach the 136.80 zone and finally 137.50 (8/8 Murray).
The daily pivot point is located around 135.10. Below this level, the Yen could make a sharp drop and USD/JPY could reach 6/8 Murray around 134.37 and even drop to the 200 EMA located at 134.14. This level coincides with the bottom of the uptrend channel which could cause a strong technical bounce.
Our trading plan for the next few hours is to sell the Japanese Yen below 135.50, with targets at 134.14, or wait for a technical bounce around 134.30 to buy with targets at 135.93 and 137.50. The eagle indicator is giving a positive signal, so we should wait for a technical correction to resume buying.
The material has been provided by InstaForex Company – www.instaforex.com
USD/JPY is moving higher after hitting a low of 133.50. It is currently trading around the key 135 level. We may see some consolidation as the market is waiting for US inflation data to be released in the next hours.
In the next few hours, it is expected that there will be a consolidation due to the fact that speculators could refrain from opening aggressive positions. Investors will be looking forward to the release of the latest US consumer inflation figures, which will be released today.
Soft inflation data is negative for the US dollar, so it could benefit the upward move in USD/JPY and the pair could reach the 7/8 Murray level around 135.93. The evidence of a slowdown in US inflation could strengthen the Japanese yen and it could fall towards levels of 134.14. Moreover, if the instrument breaks this level, the price could fall towards 5/8 Murray located at 132.81.
According to the 4-hour chart, we can see the formation of an uptrend channel since April 13. The Japanese yen is expected to find strong resistance around the 135.50 level. In case this level breaks, we could expect a bullish acceleration and USD/JPY could reach the 136.80 zone and finally 137.50 (8/8 Murray).
The daily pivot point is located around 135.10. Below this level, the Yen could make a sharp drop and USD/JPY could reach 6/8 Murray around 134.37 and even drop to the 200 EMA located at 134.14. This level coincides with the bottom of the uptrend channel which could cause a strong technical bounce.
Our trading plan for the next few hours is to sell the Japanese Yen below 135.50, with targets at 134.14, or wait for a technical bounce around 134.30 to buy with targets at 135.93 and 137.50. The eagle indicator is giving a positive signal, so we should wait for a technical correction to resume buying.
The material has been provided by InstaForex Company – www.instaforex.com
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