Daily Pivots: (S1) 131.79; (P) 132.35; (R1) 133.18; More…
Intraday bias in USD/JPY is turned neutral with current retreat. But further rally is in favor. Above 132.89 will resume the rebound from 127.20 short term bottom to 38.2% retracement of 151.93 to 127.20 at 136.64, even just as a correction to the decline from 151.93. Nevertheless, sustained break of 4 hour 55 EMA (now at 130.48) will bring retest of 127.20 low.
In the bigger picture, prior of 55 week EMA (now at 131.39) raises the chance of medium term bearish reversal, but that’s not confirmed yet. Strong rebound from current level, followed by sustained break of 38.2% retracement of 151.93 to 127.20 at 136.64 will argue that price actions from 151.93 is merely a corrective pattern. However, rejection by 136.64 will solidify medium term bearishness for 61.8% retracement of 102.58 to 151.93 at 121.43 and 38.2% retracement of 75.56 to 151.93 at 122.75.
