USDJPY Analysis – May 4, 2023

USDJPY has recently broken below the support level at 135.70, indicating a potential bearish bias for the near term.

The next level of support can be found at the rising trend line on the 4-hour chart, which currently sits around 133.85. If this support level is broken, the price could fall further towards 132.00, followed by 129.63, which marks the low from March.

However, if the trend line support holds, there is a possibility that the recent pullback is simply a correction for the uptrend from 129.63. If that’s the case, another rise towards 139.00 could still be possible.

Traders should keep a close eye on the price action around the trend line support. A break below it could signal a more significant shift in sentiment and lead to further selling pressure. On the other hand, if the trend line holds, we could see a rebound towards resistance levels at 136.50 and 137.80.