USD/JPY Analysis
The intraday bias in USD/JPY maintains a neutral stance, with the ongoing consolidation phase stemming from 140.940. While the prospect of a robust recovery exists, any upward movement is anticipated to be constrained, notably below the resistance at 146.580, to prevent a resurgence of decline. Conversely, a breach of the support at 140.940 would signal a continuation of the descent from 151.890, targeting the next Fibonacci level at 136.630.
The decline from 151.890 is identified as the third leg of a corrective pattern originating from the 2022 high of 151.930. A more profound downturn is envisioned, extending to the 61.8% retracement level of 127.200 to 151.890, situated at 136.630. A sustained breach at this level would pave the way for a revisit to the 127.200 support, recorded as the 2022 low. This bearish scenario remains favored as long as the resistance at 146.580 remains unbreached.
Analysis Summary
In Summary, the analysis observes a neutral intraday bias with the potential for a limited recovery, emphasizing resistance at 146.580. The broader perspective identifies a corrective pattern, foreseeing a deeper decline towards 136.630, contingent on the resilience of 146.580 resistance.
Key Points
- Intraday bias in USD/JPY remains neutral amid extended consolidation from 140.940.
- Potential for a stronger recovery, yet limited upside expected below 146.580 resistance.
- Downward momentum persists, with a break of 140.940 signaling a continuation toward 136.630 Fibonacci support.
