USD/JPY Daily Analysis
Today, USD/JPY broke through the 135.13 resistance level, which resumed its rebound from 129.62. This indicates an intraday bias towards the upside, with focus on the near-term channel resistance at 136.17. If the price sustains a break above this level, it raises the chances of resuming the whole rise from 127.20 and targeting 137.90 resistance and higher. As long as 133.00 support holds, further rally will remain favorable in the short term, but in case of retreat, this will change.
Looking at the bigger picture, the price actions from the 151.93 high are currently viewed as a corrective pattern to the long-term uptrend, with the first leg completing at 127.20 and the rebound from there representing the second leg. If the price can sustain a break of the 31.8% retracement of 151.93 to 127.20 at 136.34, it will bring a stronger rebound to 142.48. However, if the price breaks below 129.62, it will indicate that the third leg is starting towards the 61.8% projection of 151.93 to 127.20 from 137.90 at 122.61.
