USD / JPY pair has suspended recovery. The reason for reducing the yen speculation that Abe (Japanese Prime Minister) is likely to postpone the increase in sales tax to 2.5 years. Market volatility has increased, despite the public holiday in the United States.
In the absence of the players due to holidays in the USA and the UK in the dollar USD / JPY pair started the week higher. Having started the week below $ 110.60, the tool has grown to a level that is now holding back growth attempts. Resistance is located in the area of 111.40, while support is at 110.60.
On 4hchasovom timeframe MACD is in the positive zone. Histogram above its signal line. Indicator continues to grow and shows a buy signal. RSI oscillator signal line in the overbought zone.
Forecast USD / JPY on 05/31/2016
As the pair USD / JPY is expected downstream correction. The first would be to reduce the level of support at 110.60, and the next - a mark 109.80.
Source Fort Financial Services