USD/JPY’s rebound from 155.22 resumed by breaking through 158.55. Intraday bias is mildly on the upside for 55 4H EMA (now at 159.16). Sustained break there will argue that fall from 163.97 has completed, and target 61.8% retracement of 163.97 to 155.22 at 160.62. On the downside, though, break of 156.66 will bring deeper fall back to 155.22 low.
In the bigger picture, as long as 155.01 cluster support (38.2% retracement of 139.87 to 163.97 at 154.76) holds, the larger up trend is still expected to continue through 163.97 after current correction completes. However, firm break of 155.01 will raise the chance that USD/JPY is already in a larger scale correction, and open up deeper fall back to 139.87 (2025 low) in the medium term.
. Sustained break there will argue that fall from 163.97 has completed, and target 61.8% retracement of 163.97 to 155.22 at 160.62. On the downside, though, break of 156.66 will bring deeper fall back to 155.22 low.){kind=link}