Daily Forex Analysis – USD/JPY
In today’s Daily Forex Analysis, the spotlight is on USD/JPY as it hovers within a consolidation pattern, initiated from 147.38. The Intraday Outlook for this pair suggests that a solid break above 137.38 could reignite the broader rally, aiming to retest the 151.95 high set earlier in 2022. Conversely, breaking decisively below the 144.54 mark may imply a short-term top has been established. This would pivot the focus back downward towards the 55-day EMA, currently situated at 143.33, or possibly even lower.
Taking a step back for our Daily Analysis, the overall price dynamics since reaching the 151.95 pinnacle in 2022 indicate a corrective phase. The surge starting from 127.22 is perceived as the second wave of this correction and could continue. However, any extended rise should confront formidable resistance near the earlier 2022 high of 151.95. Should the pair break below 137.24 support, it would signal the commencement of the third wave, potentially taking the pair down to 127.22 (low of 2023) or further.
Analysis Summary
In today’s analysis, the USD/JPY pair is trapped in a consolidation phase. A decisive move on either side of the range could set the course for the near term. Strong resistance and support are in play, making it a critical pair to watch.
Key Takeaways
- A firm break above 137.38 could lead to retesting the 2022 high of 151.95.
- A decisive break below 144.54 may turn the short-term outlook bearish.
- Overall price actions are still in a corrective phase from the 2022 high.
