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12.05.202106:09 Forex Analysis & Reviews: Forecast for USD/JPY on May 12, 2021

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USD/JPY

The USD/JPY pair, despite all the desire to rise above technical resistance, remains in a depressed state. Yesterday, the US stock market (S&P 500) lost 0.87%, and losses have been 1.91% since the beginning of the week. If the stock market is still able to show a new historical high, then the growth of USD/JPY to 110.44 and 111.39 is not far off, but if the record peak shown by the S&P 500 last Friday at 4232.60 is not surpassed in the near future, then they are doomed to a deep correction all related markets. As for the yen, this may be a drop to the strongest record level of 101.19, which is clearly striking on the monthly chart.

But so far the price does not abandon its intention to rise above the MACD line (109.32). When the level is exceeded, the target opens at 110.44 (or slightly higher to the line of the blue price channel) with an intermediate resistance at 109.97. And this is the main scenario.

The convergence with the Marlin oscillator supports the pair's optimism on the four-hour timescale. There are a few points left before overcoming the resistance of the MACD line, afterwards the task of overcoming the level of 109.32 will be easier.

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