Trading Signal for USD/JPY for June 01 - 02, 2021: Buy above 109.16

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Before the opening of the European session, the USD/JPY pair is trading on 1H charts below the SMA of 21 and above the 4/8 of Murray. This level is an important support level. If it is broken, it may reach the dynamic support of the 200 EMA around 109.16. We expect that at these levels the USD/JPY pair will make a technical rebound.

The USD/JPYoair strengthened last week after the fall in treasuries. For example, the 10-year government bold yield closed lower below 1.60%. On the 1H chart, it had reached overbought levels as indicated by the eagle indicator, retreating below the psychological level of 110.00.

Yesterday there was low trading volume in the currency market due to the US and UK holidays. We hope that today in the American session, the market will have the usual volatility, and we expect a strengthening of the USDX so that the yen may bounce above 109.16.

As long as USD/JPY remains above 109.00, the USD/JPY pair is likely to rise to the 5/8 Murray zone around 110.15.

On the contrary, a consolidation below the 200 EMA by the 108.90 zone will confirm the bearish continuation and we expect the pressure to increase and there will be a new bearish sequence to the 3/8 Murray support at 108.63.

The yen is also a safe haven asset in times of crisis and uncertainty or when fear rises in the market, investors take refuge by selling this pair like gold.

The USD/JPY pair could give us a chance to buy this pair above 109.16 or 109.37 amid a respite from the downward pressure, an increase in the yield on Treasuries, and a rebound in the US dollar index.

Support and Resistance Levels for June 01– 02, 2021

Resistance (3) 110.18

Resistance (2) 109.85

Resistance (1) 109.60

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Support (1) 109.16

Support (2) 108.84

Support (3) 108.69

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Trading tip for USD/JPY for June 01-02, 2021

Buy if rebound 109.37 (4/8 of murray), with take profit at 109.70 and 110.15 (5/8), stop loss below 109.00.

Buy if rebound 109.16 (EMA 200), with take profit at 109.70 and 110.15 (5/8), stop loss below 108.75.

The material has been provided by InstaForex Company - www.instaforex.com

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