USD/JPY: Fundamental Analysis 10 May 2021

May 10, 2021

Current Trend: Downtrend Correction 

USD is under pressure after the release of Friday’s US employment report, the results of which were significantly worse than analysts’ expectations. The number of new jobs created in April amounted to 266K against the projected 978K. The previous figure was adjusted downwards by 146K. 

From the position of the margin zones, the USD/JPY pair is trading in a medium-term downtrend, the first target of which is the level of 107.51 and the second one is the target zone with the borders of 106.24–106.02. At the moment, a correction can be observed, within which buyers tried to reach the trend line (110.07–109.83), which was never tested. Instead, the price started to decline and is currently testing the support area of 108.62–108.51. To continue the trend, it is necessary to break down the level of 108.57, in which case the price will tend to the level of 107.51. To change the trend, it is necessary to break the level of 110.07 upwards. In this case, the growth target will be at the target zone 2 (112.55–112.30). 

Support and Resistance 

·         Resistance Levels: 109.41, 109.63, 110.07.

·         Support Levels: 108.57, 107.51, 106.24. 

Trading Tips 

Short positions may be opened below 108.33 with target at 106.24 and stop-loss at 109.00. Implementation time: 7-9 days. 

Long positions may be opened above 110.07 with target at 112.30 and stop-loss at 109.06.


 Timeframe: Weekly

Recommendation: Sell Stop

Entry Point: 108.30

Take Profit: 106.24

Stop Loss: 109.00

Key Levels: 106.24, 107.51, 108.57, 109.41, 109.63, 110.07 

Alternative Scenario 

Timeframe: Weekly

Recommendation: Buy Stop

Entry Point: 110.10

Take Profit: 112.30

Stop Loss: 109.06

Key Levels: 106.24, 107.51, 108.57, 109.41, 109.63, 110.07