USD/JPY Daily Forex Analysis
Our Daily Forex Analysis reveals that the intraday outlook for the USD/JPY pair remains neutral, as it continues to consolidate above 137.26. Any recovery on the upside is likely to be capped by the 55 4H EMA, currently at 140.60, which would lead to another decline. A break of 137.26, along with persistent trading below the 137.94 resistance-turned-support, would confirm a broader bearish trend, with targets placed at 127.24 and potentially lower.
When examining the larger picture in our Daily Analysis, the fall from 145.10 is interpreted as the third stage of a corrective pattern originating from 151.97, the 2022 high. The solid break of the resistance-turned-support at 137.94 should corroborate this view, aiming for the 127.24 mark (low of 2023) or even lower. At present, as long as the 145.10 resistance remains intact, even in the event of a substantial rebound, this scenario continues to be the favored one.
Summary
The USD/JPY pair is showing a neutral intraday bias, with consolidation continuing above 137.26. A break of this level, accompanied by sustained trading below the 137.94 resistance-turned-support, could confirm a larger bearish outlook.
Key Points
- The USD/JPY pair is displaying a neutral intraday outlook, with a likely limit on recovery by the 55 4H EMA, currently at 140.60.
- A confirmed break of 137.26 and sustained trading below 137.94 would indicate a larger bearish trend.
- In the broader perspective, the fall from 145.10 represents the third stage of a corrective pattern from 151.97, with a possible target of 127.24 or lower.
