FX.co ★ Daily analysis of USD/JPY for May 23, 2018

USD/JPY

The market got corrected lower on Monday, and that has now become something significant. From the high of Monday, the market has experienced about a 180-pip pullback, and that has resulted in serious threat to the recent bullish bias on the market. If the market goes further downwards by another 100 pips, the outlook on the market would turn completely bearish.

There will soon be a Bearish Confirmation Pattern in the market, which makes long trades not yet advisable. The EMA 11 would soon cross the EMA 56 to the downside and the RSI period 14 is already below the level 50.