USD/JPY Daily Analysis
The bias for USD/JPY is neutral after the recent retreat, but a further rally is likely. A break above 132.89 could resume the rebound from 127.20 and reach 136.64, which is the 38.2% retracement of 151.93 to 127.20. However, if 4-hour 55 EMA (currently at 130.48) is broken, the 127.20 low will be retested.
In the long term, the prior 55 week EMA (now at 131.39) suggests a potential bearish reversal, but this hasn’t been confirmed yet. A strong rebound from the current level, followed by a sustained break above 136.64, would suggest that the decline from 151.93 was just a correction. If rejected by 136.64, it would solidify the medium-term bearish outlook, targeting 61.8% retracement of 102.58 to 151.93 at 121.43 or 38.2% retracement of 75.56 to 151.93 at 122.75.
