USD/JPY’s strong break of 157.99 support indicates rebound from 155.22 has completed as a three wave corrective move to 160.38. Intraday bias is back on the downside for 155.22 low, and then 154.76/155.01 key support zone. Strong support is expected from the zone to bring rebound. On the upside, above 157.99 will turn intraday bias neutral first. However, decisive break of 154.76/155.01 will carry larger bearish implications.
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 to 61.8% retracement at 149.07 next.
