Trading Signal for USD/JPY for May 19-22, 2023: sell below 138.50 (+1/8 Murray – overbought)
May 19, 2023 3:23 pm
Early in the American session, the Japanese Yen is trading around 138.31 above the 21 SMA and 200 EMA within an uptrend channel formed on May 9.
The strong bullish trend in the Japanese Yen is due to strong US jobs data, better-than-expected industrial production, and also aggressive commentary from Dallas Fed Chair Lorie Logan giving a strong boost to the US dollar. This was reflected in the bullish movement of USD/JPY, which represents weakness for the yen.
According to the 4-hour chart, we can see that the Japanese yen is overbought and is showing signs of exhaustion after reaching a high of 138.75.
The eagle indicator is showing overbought signs. Hence, USD/JPY could fall in the next few hours and reach 8/8 Murray around 137.50 or towards the 21 SMA around 137.35.
Our trading plan for the next few hours is to sell the Japanese Yen below 138.50 with a target at 137.37. The eagle indicator is giving a negative signal which supports our bearish strategy.
In the event that USD/JPY consolidates above 138.80, we could expect it to resume the bullish cycle and the instrument could reach +1/8 Murray at 139.06 and finally the psychological level of 140.00.
The material has been provided by InstaForex Company – www.instaforex.com
Early in the American session, the Japanese Yen is trading around 138.31 above the 21 SMA and 200 EMA within an uptrend channel formed on May 9.
The strong bullish trend in the Japanese Yen is due to strong US jobs data, better-than-expected industrial production, and also aggressive commentary from Dallas Fed Chair Lorie Logan giving a strong boost to the US dollar. This was reflected in the bullish movement of USD/JPY, which represents weakness for the yen.
According to the 4-hour chart, we can see that the Japanese yen is overbought and is showing signs of exhaustion after reaching a high of 138.75.
The eagle indicator is showing overbought signs. Hence, USD/JPY could fall in the next few hours and reach 8/8 Murray around 137.50 or towards the 21 SMA around 137.35.
Our trading plan for the next few hours is to sell the Japanese Yen below 138.50 with a target at 137.37. The eagle indicator is giving a negative signal which supports our bearish strategy.
In the event that USD/JPY consolidates above 138.80, we could expect it to resume the bullish cycle and the instrument could reach +1/8 Murray at 139.06 and finally the psychological level of 140.00.
The material has been provided by InstaForex Company – www.instaforex.com
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