USDJPY Analysis – May 10, 2023

USDJPY has been experiencing a period of consolidation in the downtrend from 137.77, with a bounce from the support level at 133.49. The bounce has extended to as high as 135.33, and there is a possibility of further rise to the 135.80 area. However, the downtrend could be expected to resume as long as the resistance at 135.80 holds. If the resistance holds, the bounce could be treated as consolidation for the downtrend, and further decline towards the 129.63 support level is possible after the consolidation.

On the upside, a break above the 135.80 resistance level would indicate that the fall from 137.77 is a corrective consolidation for the uptrend from 129.63. In such a scenario, another rise towards 138.00 could be seen. However, if the resistance level at 135.80 fails to break, the downtrend could continue, and a breakdown below the rising trend line on the 4-hour chart and the support level at 133.49 could trigger another fall towards the 132.00 level, followed by the 129.63 support level.

Overall, traders should closely monitor the price action around the key resistance and support levels, particularly the 135.80 resistance and the rising trend line on the 4-hour chart, to determine the potential direction of the USDJPY pair.