USDJPY Daily Forecast May 08 2018

USDJPY: Consolidates With Downside Bias!

Recommendations: Short positions below 109.10 levels with 108.70 & 107.53 as next targets.

Alternative scenario: The upside breakout of 109.10 will call for a rebound to the 109.40/109.68 levels.

Description: As long as 109.10 resistance holds on a 4-hour closing basis, the USDJPY remains in a corrective pullback mode and further down could be seen to the 108.70/108.53 levels, a halt is likely but a cut will open the 108.15/107.85 levels. On the upside, above 109.10 will bring limited gains to the 109.40/109.68 levels. A 4-hour closing above 109.68 will restore the upside momentum and challenge the 110.00 levels and pave the way to the 110.50/110.85 levels. However; the pair remains bearish below 109.68 levels.