Detailed FX Market Outlook and Analysis

USD/JPY Daily Analysis 23-MAR-2023

USD/JPY Daily Analysis

The USD/JPY pair is attempting to continue its descent from 137.90 by breaking the temporary low at 130.52, and the intraday bias is once again on the downside. A sustained trade below the 61.8% retracement level of 127.20 to 137.90 at 131.28 would open the way for a retest of the 127.20 low. However, if the resistance level at 132.99 is broken, it would suggest a short-term bottom and turn the bias to the upside for a stronger rebound.

In the bigger picture, the rebound from 127.20 is likely to have ended at 137.90 as a corrective move, with a strong break of the 55-day EMA. The downtrend from the 2022 high of 151.93 is not yet over. If the level of 127.20 is broken, the downtrend will resume and the target will be the 61.8% projection of 151.93 to 127.20 from 137.90 at 122.61. This will remain the favored scenario as long as the resistance level at 137.90 holds.

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