Detailed FX Market Outlook and Analysis

USD/JPY Daily Analysis 03-FEB-2023

USD/JPY Daily Analysis

While USD/JPY weakens this week, the downside remains above 127.20 support. Intraday bias remains neutral first. On the downside, a break of 127.20 will resume the decline from 151.93 and target 121.43 Fibonacci level. Nevertheless, the break of 131.56 resistance on the upside should confirm short-term bottoming and turn bias back to the upside for a stronger rebound to 55 days EMA (now at 133.23) and possibly above.

In the bigger picture, the break of 55 weeks EMA (now at 131.39) raises the chance of medium-term bearish reversal, but that’s not confirmed yet. Strong support could be seen around a 61.8% retracement of 102.58 to 151.93 at 121.43 and a 38.2% retracement of 75.56 to 151.93 at 122.75 to bring a rebound. But a break of 131.56 resistance is needed to indicate bottoming first. Otherwise, further fall will remain in favor.


Latest Analysis