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11.05.202013:34 Forex Analysis & Reviews: Technical analysis and recommendations for USD / JPY on May 11, 2020

Hello!

The USD / JPY currency pair is one of the few that has more or less adequately reacted to the US jobs report for April. The number of new jobs in the non-agricultural sectors of the American economy, as well as the unemployment rate and growth in the average hourly wage in the United States, published on Friday, turned out to be better than expected.

As has been noted more than once, the USD / JPY pair is very sensitive to important statistics from the United States, which was confirmed during Friday's trading. But first, let's look at the closing results of the last weekly session.

Weekly:

Exchange Rates 11.05.2020 analysis

After the decline to the symbolic mark of 106.00, the pair began to recover, and the last weekly candle appeared a fairly long lower shadow, which is much larger than the bearish body. Most often, after the formation of such candlestick patterns, the quotes show growth. This is exactly what is being observed at the moment.

If the growth continues, its closest targets will be the area 107.63, where the maximum values of the week before last weekly trading are noted, and the lower border of the Ichimoku indicator cloud also passes. Further targets are represented by 50 simple moving average and Tenkan line, which are located, respectively, at 108.16 and 108.44.

The bearish scenario implies the breakdown of a significant support level of 106.00, after which the road to lower prices will open, such as 105.70, 105.30, and 105.00. I believe that a true breakdown of the psychological level of 105.00 will significantly increase the bearish mood in the pair. However, at the time of writing, the tandem is showing a solid strengthening.

Daily:

Exchange Rates 11.05.2020 analysis

After the lower border of the daily Ichimoku cloud and the Tenkan line blocked the path northward last Friday, today the pair overcame these barriers and is already trading within the daily cloud.

The quotes will most likely proceed to the price area 107.57-107.70, where there are 50 MA and the Kijun line. If this resistance zone is passed, growth will continue to the upper border of the cloud and 89 EMA. This is the price range 107.90-108.10, this means that the probability of growth directly to another very important mark of 108.00 is quite real. Overcoming 89 exhibitors will make 144 EMA (108.33) the next target, while consolidation above this level will indicate further upward prospects for the USD / JPY pair.

H4:

Exchange Rates 11.05.2020 analysis

At the end of the review, the pair breaks 144 EMAs on a 4-hour timeframe. In case of success and consolidation above, on the rollback to the broken exhibitor 144, it is recommended to consider purchases with immediate goals in the region of 107.90-108.10. If bearish candlestick patterns appear here, this will be a signal to open short positions. However, given the last weekly candle, in my subjective opinion, the USD / JPY pair has all the technical prerequisites for strengthening, so I consider purchases to be the main trading idea. If we consider the opening of long positions at more attractive prices, then it is worth taking a closer look at the price zone 107.15-107.00.

I wish you successful and profitable trading!

*这里的市场分析是为了增加您对市场的了解,而不是给出交易的指示。

Ivan Aleksandrov,
Analytical expert of InstaSpot
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