USD/JPY Waiting for Stronger Trend Signal 5/12/2024

The USD/JPY pair maintained its bearish momentum as anticipated, showing a gradual decline toward the initial target of 149.10, with the pair reaching a low of 149.50.

Technical Analysis:

• Bearish Indicators:
  • The 50-day simple moving average (SMA) continues to exert downward pressure, supporting the continuation of the bearish trend.
  • However, the Relative Strength Index (RSI) is attempting to generate positive signals, introducing a degree of uncertainty.

Scenario Analysis:

1. Bearish Continuation (Most Likely):
   • A break below 149.10 would strengthen the downward trend, with the next targets at 148.50 and 147.50.
2. Bullish Reversal:
   • To confirm a bullish scenario, the pair must breach the key resistance levels at 150.85 and 151.20.
   • A break above these levels would pave the way for upward targets at 151.90 and 152.50.

Key Considerations:

• High-Impact Economic Data:
  • The release of U.S. Weekly Unemployment Claims today could significantly influence market movements, leading to heightened volatility.
• Risk Warning:
  • Elevated risk persists due to ongoing geopolitical tensions, necessitating cautious trading strategies as all scenarios remain possible.

Disclaimer: Trading in CFDs carries inherent risks. The analysis provided herein is not a recommendation to buy or sell, but rather an interpretation of the current price movement on the chart.

S1: 149.10	R1: 150.85
S2: 148.45	R2: 150.85
S3: 147.50	R3: 152.55