USD/JPY Daily Analysis
The intraday bias for USD/JPY remains neutral as the market is currently in a consolidation phase following the movement from 133.48. There is a higher probability of further decline as long as the resistance level at 135.68 remains intact. The ongoing fall from 137.76 is considered the third leg of the pattern that originated from 137.90. If the price drops below 133.48, the next target would be 133.00 initially, and a further break would aim for the support level at 129.62. However, as long as 129.62 holds, there is still a favorable outlook for a larger rebound to resume from the low point of 127.20, albeit at a later stage. On the upside, a breakthrough above the minor resistance at 135.68 would shift the bias back to the upside, targeting 137.76/90 instead.
Taking a broader perspective, the price movements from the high of 151.93 are currently viewed as a corrective pattern within the long-term uptrend. The first leg of the correction is likely to have concluded at 127.20, and the subsequent rebound from that level is considered the second leg. If there is a sustained break above the 38.2% retracement level of the decline from 151.93 to 127.20, located at 136.34, it would indicate a stronger rebound towards the 61.8% retracement level at 142.48. Conversely, if there is a break below 129.62, it would suggest that the third leg of the corrective pattern is commencing, with the potential to reach the previous low at 127.20.
