Daily Pivots: (S1) 155.91; (P) 156.25; (R1) 156.52; More…
USD/JPY dips low today as corrective pullback from 157.88 extends. While further fall cannot be ruled out, downside should be contained by near term channel support (now at 154.12) to bring rebound. Above 156.71 minor resistance will turn bias back to the upside. Further break of 157.88 will resume the whole rally from 139.87. Next target is 158.86 structural resistance, and then 161.94 high. However, firm break of the channel support will bring deeper correction to 55 D EMA (now at 152.86).
In the bigger picture, current development suggests that corrective pattern from 161.94 (2024 high) has completed with three waves at 139.87. Larger up trend from 102.58 (2021 low) could be ready to resume through 161.94 high. Decisive break of 158.85 structural resistance will solidify this bullish case and target 161.94 for confirmation. On the downside, break of 150.90 resistance turned support will dampen this bullish view and extend the corrective range pattern with another falling leg.
 to bring rebound. Above 156.71 minor resistance will turn bias back to the upside. Further break of 157.88 will resume the whole rally from 139.87. Next target is 158.86 structural resistance, and then 161.94 high. However, firm break of the channel support will bring deeper correction to 55 D EMA (now at 152.86).){kind=link}