FX.co ★ Daily analysis of USD/JPY for May 11, 2018

USD/JPY

A rise in the bullish momentum has been witnessed this week, but the price retraced after testing the supply level at 110.00. The retracement is strong enough (in the short-term) to challenge the recent bullishness in the market. A movement below the demand level at 108.00 would result in a bearish bias in the short-term.

There are mixed signals in the market. The EMA 11 is still above the EMA 56; but the RSI period 14 is not above the level 50. It would be OK to stay away from the market until there is a directional movement in it.