FX.co ★ Forecast for USD / JPY pair on May 21, 2019

USD / JPY pair

The situation around the Chinese company Huawei has strongly affected the Japanese yen. Its price has fulfilled the target area between the lines of the ascending and descending channels this morning, as a sensation is created. It is trying to consolidate above yesterday's maximum, which will automatically lead to anchoring above the red line of the downward price channel of daily scale.

Japan's GDP for the 1st quarter showed an increase of 0.5% against the pessimistic forecast of -0.1%. The Chinese stock market today adds more than 1% (Shanghai Composite 1.07%). On Wednesday, the Japanese trade balance for April is projected to improve from -0.18 trillion yen to -0.12 trillion.

As a result, we expect the growth of the USD/JPY pair to the MACD line of daily scale in the area of 111.05.