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Daily analysis of USD/JPY for May 4, 2018

USD/JPY

Since testing the supply level at 110.00, this market has been getting corrected lower. The correction has become serious enough to threaten the recent bullish bias. Price is currently going below the supply level at 109.00 (a 130-pip retracement from the supply level at 110.00), going towards the demand level at 108.50.

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Should price go lower than it is currently situated, thing would turn bearish. The RSI period 14 is now below the level 50; whereas the EMA 11 remains above the EMA 56. In less than 48 trading hours, the next direction in the market would be determined.

The material has been provided by InstaForex Company - www.instaforex.com