Detailed FX Market Outlook and Analysis

USD/JPY Daily Analysis 22-MAY-2023

USD/JPY Intraday analysis Forexwick


The intraday analysis of USD/JPY reveals a current neutral bias, signifying a phase of consolidation below the temporary top at 138.75. The downside retracement is anticipated to find support around 136.36, ensuring the potential for another rally. A breakthrough of the resistance at 138.75 would shift the bias back to the upside, targeting the 100% projection level between 127.20 and 137.92 from the base at 129.64, specifically located at 140.32. A successful breach of this level would set the stage for further gains, aiming at the fibonacci level of 142.48.

Examining the larger perspective, the upward movement from 127.24 is considered as the second leg of a corrective pattern originating from the high at 151.93. A stronger rally is projected towards the 61.8% retracement level of the decline from 151.93 to 127.20, positioned at 136.34. A sustained breakthrough of this level would pave the way for a retest of the 151.91 high. Conversely, a break of the support at 133.71 would suggest that the pattern may have commenced its third leg, with a potential target of the low at 127.22.

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