Daily Pivots: (S1) 158.65; (P) 159.07; (R1) 159.43; More…
USD/JPY rebounded strongly after touching 158.55 support and focus is back on 159.84 temporary top. Above there will resume the rally from 152.25 to retest 161.94 high. Firm break there will confirm larger up trend resumption and target 61.8% projection of 139.87 to 159.44 from 152.25 at 164.34. Nevertheless, considering bearish divergence condition in 4H MACD, break of 158.55 should indicate short term topping. Intraday bias will then be back on the downside for 38.2% retracement of 152.25 to 159.74 at 156.87.
In the bigger picture, outlook is unchanged that corrective pattern from 161.94 (2024 high) should have completed with three waves at 139.87. Larger up trend from 102.58 (2021 low) could be ready to resume through 161.94. This will remain the favored case as long as 55 W EMA (now at 152.70) holds. Firm break of 161.94 will pave the way to 61.8% projection of 102.58 to 161.94 from 139.87 at 176.75.
