Daily Pivots: (S1) 132.38; (P) 133.10; (R1) 134.49; More…
USD/JPY is losing downside momentum as seen in 4 hour MACD. But further decline is still in favor as long as 135.10 resistance holds. Firm break of 61.8% retracement of 127.20 to 137.90 at 131.28 will pave the way to retest 127.20 low. However, break of 135.10 will argue that fall from 137.90 is completed and turn bias back to the upside for retesting this high.
In the bigger picture, rebound from 127.20 should have completed at 137.90 as a corrective move, with strong break of 55 day EMA. The down trend from 151.93 (2022 high) is not over yet. Break of 127.20 will resume this down trend and target 61.8% projection of 151.93 to 127.20 from 137.90 at 122.61. This will now be the favored case as long as 137.90 resistance holds.
