The Expectations Of USD/JPY Are Still Valid

The results of the elections in France caused the market to open with a gap on most instruments. That was the case with the EUR currency pairs – EUR/USD rose with over 190 pips, EUR/AUD - with about 180 pips, EUR/JPY – with 370 pips. That was a reaction to the fact that the pro-European candidate, Emmanuel Macron, had more votes. His presidency is expected to be a stabilizing factor for the European Union and the Euro, which went through such strong shocks in the past months.

The USD-related currency pairs opened with smaller gaps, but the reaction of the market had an indirect effect on them as well.

USD/JPY opened with a bullish gap of about 130 pips.

Despite that, until the next round of the elections in France there are two more weeks, enough time for the market to follow the logical technical development of the currency pairs. In my opinion, USD/JPY could still form another technical drop below 108.

However, if the pair just recovers the gap and then continues rising, we could see another rally to 111.50 or even to 112.50, i.e. to the resistance trend line of the channel.