Weekly Technical Outlook: USD/JPY ; Market Forecasts for May 22nd – May 26th

• Resistance level 113.339, 114.258, 114.715
• Pivot Level 110.78
• Support Level 110.134

Technical Analysis

The USD/JPY pair closed weekend trading above 110.78 levels and got a good support base that reinforces the expectations of continuing the bullish bias from the downward movement. This is in place for quite some time now on the chart price and we can expect the same this time as well.

The pair provides signals for the price recovery in the upcoming days and is supported by stochastic positivity that appears clearly oversold on the daily time frame.

The pair remains bullish when there is a rise above 25.0 levels with pair trading on rebound after testing barriers.

This makes the trading settles now at the support area and makes an upward move as we can see some consolidations with a bullish momentum and two bar reversal.

Further rise is expected from current levels on the new found support area. With the beginning of the new trend and the first main target located at 113.339, breaking this level besides holding above it will push the price to being bullish for its next target located at 114.258 levels.

Economic

• Chicago Fed National Activity Index, New Home Sales, Existing Home Sales, FOMC Minutes
• OPEC meeting, Goods Trade Balance, Initial Jobless Claims
• Durable Goods Orders, Michigan Consumer Sentiment Index
• Bank of Japan Governor Kuroda Speech, National CPI Ex-Fresh Food

Area of Interest

• Strong support at 110.078 areas and closed above rebound of trend line.
• Bullish momentum with two bar reversal above the support area.
• Price action closed above rebound of trend line and oscillator rising above 25.0 levels indicating shift in momentum.
• At Flip Area on Daily time frame support levels.

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