USD/JPY UPDATE AND INTRADAY ANALYSIS
In the current market conditions, the USD/JPY pair has continued its impressive rally, maintaining a strong upside intraday bias. Traders and investors are anticipating further upward movement in the pair, with the next target set at 140.34. This particular level represents the 100% projection of the range between 127.22 and 137.92, which has been calculated from the starting point of 129.64. A successful breach of the 140.34 level would signal a significant bullish momentum and could potentially lead the pair towards the next target at 142.48, corresponding to the Fibonacci level.
On the flip side, if the USD/JPY pair fails to sustain its upward trajectory and encounters a break below the minor support level of 138.24, the intraday bias would shift to a more neutral stance. Such a scenario could potentially result in a period of consolidation as market participants reassess their positions and await further clarity.
Taking a broader perspective into account, the ongoing upward movement from the low of 127.22 is regarded as the second phase of a corrective pattern that followed the previous high of 151.95. This corrective pattern suggests that a more substantial rally may be in the cards for the USD/JPY pair. Traders and investors are closely monitoring the 61.8% retracement level at 136.36, which is based on the range between 151.95 and 127.22. A convincing breakthrough above this level would validate the bullish sentiment and potentially pave the way for a retest of the 151.95 high.
However, it’s worth noting that if the support level at 133.75 is breached, it would raise concerns about the possibility of the corrective pattern entering its third and final phase. In this scenario, the USD/JPY pair could be targeted towards the previous low of 127.22, signaling a potential shift towards a more bearish outlook.