FX.co ★ Trading Signal for USD/JPY for April 27 - 28, 2023: buy if breaks 133.95 (21 SMA - 6/8 Murray)

Early in the American session, USD/JPY is trading around 133.81 below the 21 SMA and below the strong resistance of 6/8 Murray located at 134.37.

Since April 12, the Japanese yen has been trading within a secondary downtrend channel. Besides, since March 21, it has been trading within a major uptrend channel. In case USD/JPY continues to trade within this bearish channel, it is expected to fall and reach the support zone around 133.15.

On the other hand, if there is a break of the downtrend channel and a consolidation above 133.95 (21 SMA), there could be a bullish acceleration and the instrument could reach 135.93 (7/8 Murray).

Conversely, after a sharp break below the 200 EMA and below the 5/8 Murray, we could expect USD/JPY to strengthen and it could reach the price level of March 24 around 129.67.

Given that the Japanese yen is in an uptrend, a break and consolidation above 134.00 could be a clear signal to buy with targets at 135.93. Ultimately, the instrument could reach the 137.50 level.

Our trading plan for the next few hours is to buy above 133.95 with targets at 134.37 (6/8 Murray) and 135.93 (7/8 Murray). The Eagle indicator remains in the neutral zone but maintains a bullish bias.