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Forecast for USD/JPY on May 9, 2019

USD/JPY

The dollar has lost 90 points against the yen over the past three days amid the turmoil over the US-China trade negotiations. The price has broken the support of the upward price channel (green) and is approaching the support of the downward channel, in the area of 109.54. But before the price there is an important price resistance - the low of March 23 at the level of 109.72, and taking into account the established convergence on the four-hour chart on the marlin oscillator, it is possible to expect a price reversal from this level.

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The US-China talks will be held today. If by the end of the day, the situation does not normalize, then the increased tariffs on goods from China will come into effect tomorrow. In this case, the USD/JPY pair may continue to decline as an initial reaction.

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