USD/JPY’s break of 156.81 minor support argues that rebound from 152.87 has completed at 159.02. That came ahead of 61.8% retracement of 163.97 to 152.87 at 159.72. Intraday bias is back on the downside for retesting 152.87. For now, risk will stay on the downside as long as 159.02 holds, in case of recovery.
In the bigger picture, price action from 163.97 medium term top is seen as correcting the rise from 139.87. The first leg could have completed at 152.87, ahead of 152.25 structure support. Sustained break above 55 D EMA (now at 158.22) would pave the way back to retest 163.97 high. Nevertheless, strong resistance should be seen there to cap upside. There would likely another falling leg before the pattern completes.
