USD/JPY Analysis
The current intraday bias in USD/JPY maintains a neutral stance, with the ongoing consolidation phase stemming from 140.94 showing signs of extension. The potential upside in the prevailing recovery is anticipated to encounter limitations, particularly below the 156.48 resistance threshold, signaling a potential downturn. A decisive breach of 140.94 is poised to reignite the broader descent from the high of 151.89, with the subsequent target set at the next Fibonacci level of 136.63.
The descent from 151.89 is identified as the third leg within the corrective pattern originating from the 2022 high of 151.93. A more profound decline is envisaged towards the 61.8% retracement level, located at 136.63, and a sustained breach at this level would clear the path to the 127.20 support, marking the 2022 low. This scenario retains favorability, contingent upon the resilience of the 146.58 resistance.
Analysis Summary
The intraday bias for USD/JPY is neutrally poised amid extended consolidation from 140.94. A capped recovery below 156.48 resistance signals a potential decline. The broader perspective sees the fall from 151.89 as the third leg in a corrective pattern, with a target at 136.63. A sustained break below 136.63 may lead to the 127.20 support.
Key Points
- Intraday bias is neutral; recovery is limited below 156.48 for the potential decline.
- A broader view identifies the fall from 151.89 as the third leg of a corrective pattern.
- Target at 136.63; sustained break may lead to 127.20 support if 146.58 resistance holds.
