USD/JPY Daily Analysis
At the moment, the intraday bias in USD/JPY remains bullish. A rebound from the short-term bottom at 127.20 is underway, aiming for the 38.2% retracement level of 151.93 to 127.20 at 136.64, where a significant resistance level may halt the corrective rise. However, if the minor support level of 131.49 is broken, the intraday bias will turn neutral.
In the bigger picture, the proximity to the 55 week EMA (currently at 131.47) increases the possibility of a medium-term bearish reversal, but it has not been confirmed yet. A strong rebound from the current level, followed by a sustained break of the 38.2% retracement level of 151.93 to 127.20 at 136.64, would indicate that the price action from 151.93 was merely a corrective pattern. On the other hand, if the price is rejected at 136.64, it would solidify the medium-term bearishness, with a target at the 61.8% retracement level of 102.58 to 151.93 at 121.43 and the 38.2% retracement level of 75.56 to 151.93 at 122.75.
