USD/JPY Daily Analysis
USD/JPY is staying in the range above 127.20, and intraday bias remains neutral. On the downside, a break of 127.20 will resume the decline from 151.93 and target the 121.43 Fibonacci level. Nevertheless, the break of 131.56 resistance on the upside should confirm short term bottoming, and turn bias back to the upside for a stronger rebound to 55 days EMA (now at 134.01).
In the bigger picture, the break of 55 weeks EMA (now at 131.39) raises the chance of medium-term bearish reversal, but that’s not confirmed yet. Strong support could be seen around a 61.8% retracement of 102.58 to 151.93 at 121.43 and a 38.2% retracement of 75.56 to 151.93 at 122.75 to bring a rebound. But a break of 131.56 resistance is needed to indicate bottoming first. Otherwise, further fall will remain in favor.