USD/JPY Daily Analysis
The USD/JPY pair is still expected to rise further, as long as the minor support level of 133.91 holds. However, a strong resistance level could be seen at the 38.2% retracement level of 151.93 to 127.20, which is at 136.64. This would complete the corrective rebound from 127.20. If the minor support level of 133.91 is broken, the bias will turn back to the downside towards the support zone of 129.79/132.89.
Looking at the bigger picture, the prior break of the 55-week EMA (now at 131.54) raises the chance of a medium-term bearish reversal, although this 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, will argue that the price actions from 151.93 are merely a corrective pattern. However, if there is rejection at 136.64, it will solidify the medium-term bearishness and indicate a potential drop towards 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.
