Currency pair quotes Dollar Yen USD/JPY continue to move within the framework of the fall and the formation of the bullish “Wolfe Wave” pattern. At the time of the publication of the forecast, the US Dollar to the Japanese Yen is 127.57. Moving averages indicate the presence of a short-term bearish trend for the pair. Prices have broken through the area between the signal lines, which indicates pressure from sellers of the US Dollar and a potential continuation of the fall in prices already from current levels. As part of the forecast for the Japanese Yen on May 24, 2022, we should expect an attempt to develop a decline and test the support area near the level of 125.65. Further, the price bounces up and the USD/JPY pair continues to rise to the area above the level of 130.55.
USD/JPY forecast Dollar Yen May 24, 2022
An additional signal in favor of the growth of the USD/JPY currency pair will be a test of the support line on the relative strength index (RSI). The second signal will be a rebound from the lower border of the bullish Wolfe Wave pattern. Cancellation of the growth option for the Dollar/Yen currency pair will be a fall and a breakdown of the level of 124.55. This will indicate a breakdown of the support area and the continuation of the fall of the Dollar/Yen pair. In this case, we should expect the pair to continue falling to the area below the level of 122.45. With the breakdown of the resistance area and the closing of quotes above the level of 128.75, which will indicate the breakdown of the upper limit of the bullish “Wolfe Wave” model.
Important news from Japan, which may affect the rate of the USD/JPY pair, is not expected, so the pair will continue to move as part of the technical analysis.
Thus, USD/JPY Forecast Dollar/Yen May 24, 2022 suggests an attempt to test the support area near the level of 125.65. Then, the continuation of the growth of quotations in the area above the level of 130.55. In favor of the rise of the pair, a test of the trend line on the relative strength index (RSI) will come out. Cancellation of the growth option will be a fall and a breakdown of the area of 124.55. This will indicate a breakdown of the support level and a continuation of the fall in the pair with a potential target below the level of 122.45.a