USD/JPY analysis for May 07, 2018

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Recently, the USD/JPY pair has been trading upwards. The price tested the level of 109.32. According to the H1 time – frame, I found a broken downward channel, which is a sign that selling looks risky. I also found a hidden bullish divergence on the RSI oscillator, which is another sign of strength. My advice is to watch for potential buying opportunities. The upward target is set at the price of 110.00.

Resistance levels:

R1: 109.34

R2: 109.62

R3: 109.96

Support levels:

S1: 108.71

S2: 108.25

S3: 108.08

Trading recommendations for today: watch for potential buying opportunities.

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