USD/JPY Daily Analysis
USD/JPY is losing some upside momentum but the retreat is so far shallow. Intraday bias stays on the upside and rises from 130.38 should target a test on 139.37 high. Strong resistance could be seen there to limit upside, to bring another fall, as the third leg of the consolidation pattern from 139.37. On the downside, below 132.50 minor support will resume the fall from 139.37 to 126.35 structural support.
In the bigger picture, a fall from 139.37 medium-term top is seen as correcting the 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.