Detailed FX Market Outlook and Analysis

USD/JPY Daily Analysis 17-JAN-2023

USD/JPY Daily Analysis

Intraday bias in USD/JPY stays neutral for consolidation above 127.20. The further decline will remain in favor as long as the 134.76 resistance holds. A break of 127.20 will resume the fall from 151.93 to 121.43 Fibonacci level next. Nevertheless, a firm break of 134.76 will confirm short-term bottoming and turn bias back to the upside.

In the bigger picture, the firm break of 55 weeks EMA (now at 131.59) raises the chance of medium-term bearish reversal, but that’s not confirmed yet. Strong support could be seen around 61.8% retracement of 102.58 to 151.93 at 121.43 and 38.2% retracement of 38.2% retracement of 75.56 to 151.93 at 122.75 to bring rebound. But a break of 134.76 resistance is needed to indicate bottoming first. Otherwise, further fall will remain in favor.

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