02.06.202315:05 Forex Analysis & Reviews: Trading Signal for USD/JPY for June 2-5, 2023: buy above 138.84 (21 SMA - bearish channel)

Early American session, the Japanese Yen is trading around 138.94 above the 21 SMA and within a downtrend channel formed since May 26.

In the next few hours, the US Non-Farm Payrolls data will be published and this data could generate strong volatility. Hence, the Japanese yen is expected to reach the resistance zone of 139.19. There is the 200 EMA which could offer strong resistance.

In case the Yen breaks and consolidates above 139.15, we could expect it to reach the 139.86 zone and finally, 6/8 Murray around 140.62.

On the contrary, in case the USD/JPY pair falls below the 21 SMA (138.84), we could expect a bearish acceleration and the instrument could reach 4/8 Murray at 137.15.

Our trading plan for the next works is to buy USD/JPY above the 21 SMA located at 138.84 with targets at 139.20 (top of the bearish channel). In case of a break, we might continue buying with targets at about 139.86. The eagle indicator is showing oversold signs which supports our bullish strategy.