Daily Pivots: (S1) 155.23; (P) 155.61; (R1) 155.93; More…
USD/JPY’s rally continues today and the break of 156.94 solidify that case that corrective pattern from 157.88 has completed with three waves to 154.38. That is, rally form 139.87 is ready to resume. Intraday bias is back to the upside for 157.88 and above. Firm break of 158.85 key structural resistance will be an important medium term bullish sign. Next target will be 158.85 high. Risk will now stay on the upside as long as 154.38 support holds, in case of retreat.
In the bigger picture, corrective pattern from 161.94 (2024 high) could have 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.
