USDJPY Analysis – May 9, 2023

USDJPY has been in a consolidation phase for the downtrend from the high of 137.77. The pair has been in range trading between 133.49 and 135.80, and further consolidation could be expected in the near term.

If the resistance at 135.80 holds, the downtrend could be expected to resume, with a breakdown below the rising trend line on the 4-hour chart and 133.49 support likely to trigger another fall towards 132.00. A further decline below this level could aim for the 129.63 support.

On the other hand, a break above the 135.80 resistance level would indicate a potential reversal of the downtrend, and the next target could be around the 137.00 area. However, this scenario appears less likely at the moment, given the recent bearish momentum in the market.

Overall, traders should keep an eye on the key levels mentioned above, as they will be critical in determining the near-term direction of USDJPY. The current consolidation phase provides opportunities for range trading strategies, but traders should remain cautious and manage their risk effectively, given the unpredictable nature of the currency market.