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11.05.202116:04 Forex Analysis & Reviews: Short-term technical analysis on USDJPY for May 11, 2021.

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USDJPY is trading just above 108.50. Price is about to break out and below the major support trend line. In previous analysis we warned traders of a possible reversal to the downside from 109.50 area. Price has reversed since then and a break below 108.50 would increase the chances of the bearish pull back scenario to 106.50.

Green rectangle- resistance area

Red line -support

Black lines -expected size of decline

USDJPY has reversed lower and is now about to break below support. Our target as we explained in previous posts, is around 106-107 area. As long as price is below 109.50 (green rectangle) we remain pessimistic, waiting for a move lower towards 106. Bears need to clearly break the red support trend line. Bulls need to react now and bounce strongly higher above 109.50.

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