USDJPY Outlook

USD/JPY's rise from 152.87 resumed by breaking through 159.02. Intraday bias is now on the upside for 160.38 resistance first. Firm break there will pave the way to 100% projection of 152.87 to 159.02 from 156.06 at 162.21. On the downside, below 158.65 minor support will turn intraday bias neutral first.

In the bigger picture, current development suggests that the first leg of the corrective pattern from 163.97 has completed with three waves down to 152.87. Further rally would be seen to retest this high. But strong resistance should be seen from there to limit upside on first attempt. The correction is still expected to extend with another falling leg before long term up trend resumption.

Immediate focus is on 159.02 resistance as USD/JPY's rebound from 156.06 extends. Firm break there will resume the rise from 152.87 to 160.38 resistance next. On the downside, below 157.67 support will turn bias back to the downside for 156.06 support instead

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 158.01) 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.

USD/JPY is still bounded in sideway trading and intraday bias stays neutral. On the upside, above 159.02 will target 160.38. On the downside, firm break of firm break of 156.06 will argue that rebound from 152.87 has completed after failing to sustain above 55 D EMA. Deeper fall should then be seen back to 152.87 low.

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 158.01) 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.