USD/JPY Daily Analysis
USD/JPY’s fall from 139.37 continues today and intraday bias remains on the downside. Deep fall should be seen to 131.34 resistance turned support and below. But strong support is expected above 126.35 to contain the downside, at least on the first attempt, to bring a rebound. On the upside, a firm break of 135.55 will bring a stronger rise back to retest the 139.37 high.
In the bigger picture, a medium term top should be in place at 139.37, on bearish divergence condition in daily MACD. Fall from there could be correcting the whole up trend from 101.18 (2020 low). While deeper decline cannot be ruled out, the outlook will stay bullish as long as 55 weeks’ EMA (now at 121.84) holds. Long term up trend is expected to resume through 139.37 at a later stage after the correction finishes.
