USD/JPY Daily Analysis
The 4-hour MACD indicates that USD/JPY is losing downside momentum. However, as long as the resistance at 135.10 holds, a further decline is still likely. If the 61.8% retracement of the 127.20 to 137.90 move at 131.28 is firmly broken, then the pair could retest the 127.20 low. Conversely, if the resistance at 135.10 is broken, it would suggest that the fall from 137.90 has ended, and bias would turn to the upside for a retest of that high.
In the larger picture, the rebound from 127.20 is likely a corrective move that ended at 137.90, evidenced by a strong break of the 55-day EMA. The downtrend from the 2022 high of 151.93 is not yet over, and a break of 127.20 would resume this trend, with a target of the 61.8% projection of the 151.93 to 127.20 move from 137.90 at 122.61. This scenario will be favored as long as the resistance at 137.90 remains intact.
