USD/JPY Daily Analysis
The intraday bias for USD/JPY is currently neutral, and consolidation is expected to occur below 133.73. The rise from 129.62 is considered the third leg of the corrective pattern from 127.20, and a sustained break of the 55-day EMA (currently at 133.34) will target the resistance level of 137.90. If the minor support at 131.75 is broken, the bias will shift downwards towards 129.62. A break of this level will lead to a retest of the 127.20 low.
In the bigger picture, it is possible that the corrective pattern from 127.20 is extending, but the overall downtrend from 151.93 is expected to resume at a later stage. If the 127.20 level is broken, the downtrend will resume and the target will be the 61.8% projection of 151.93 to 127.20 from 137.90, which is at 122.61. This is the favored scenario as long as the 137.90 resistance level remains unbroken.
