FX.co ★ Daily analysis of USD/JPY for May 7, 2018

USD/JPY

The bias on the USD/JPY pair is bullish, but the trend is in a precarious position. Price did not go upwards significantly last week, neither did the bearish correction that followed help the matter. Once the supply level at 110.00 was tested, the price got corrected by 100 pips, moving briefly below the demand level at 109.00 and then closing above it on Friday.

Since the bullish bias is in a precarious situation, any movement below the demand level at 108.00 will result in a clear bearish signal. A movement to the downside is very much likely this week.