Daily Pivots: (S1) 136.15; (P) 136.68; (R1) 137.03; More…
Range trading continues in USD/JPY and intraday bias stays neutral. Overall, price actions from 139.37 are seen as a corrective pattern, with rise from 130.38 as the second leg. Above 137.70 will extend the rebound but upside should be limited by 139.37. On the downside, firm break of 135.57 will suggest that the third leg of the pattern has started, and turn intraday bias back to the downside for 131.72 support first.
In the bigger picture, price actions from 139.37 medium term top are seen as a corrective pattern to up trend from 101.18 (2020 low). While deeper decline cannot be ruled out, outlook will stays bullish as long as 55 week EMA (now at 123.21) holds. Long term up trend is expected to resume through 139.37 at a later stage, after the correction finishes.
