Detailed FX Market Outlook and Analysis

USD/JPY Daily Analysis 04-August-2022

USD/JPY Daily Analysis

Intraday bias in USD/JPY remains neutral and some consolidations would be seen above 130.38 first. On the downside, below 130.38 will resume the fall from 139.37, as a correction to a medium-term uptrend, towards 126.35 support. Strong support is expected above there, at least on the first attempt, to bring a rebound. On the upside, a firm break of 134.58 will turn bias to the upside for a stronger rally to retest the 139.37 high.

In the bigger picture, a medium-term top should be in place at 139.37, on bearish divergence condition in daily MACD. Fall from there could be a correct whole up trend from 101.18 (2020 low). While deeper decline cannot be ruled out, the outlook will stay bullish as long as 55 weeks’ EMA (now at 121.84) holds. Long term up trend is expected to resume through 139.37 at a later stage after the correction finishes.

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