Daily Pivots: (S1) 159.79; (P) 160.14; (R1) 160.79; More…
USD/JPY steep decline today suggests medium term topping at 160.71, on bearish divergence condition in D MACD. Deeper fall should be seen to 152.25 cluster support (38.2% retracement of 139.87 to 160.71 at 152.74). Strong support should emerge there to bring rebound, at least on first attempt. However, decisive break of 152.25/75 will confirm rejection by 161.94 high. That would pave the way back to 61.8% retracement at 147.83 next.
In the bigger picture, for now, corrective pattern from 161.94 (2024 high) is still seen as completed at 139.87. Rise from there is seen as resuming the long term up trend. So, break of 161.94 is expected at a later stage to resume the long term up trend. However, sustained break of 55 W EMA (now at 153.90) will dampen this view and bring deeper fall back towards 139.87 to extend the pattern from 161.94.
. Strong support should emerge there to bring rebound, at least on first attempt. However, decisive break of 152.25/75 will confirm rejection by 161.94 high. That would pave the way back to 61.8% retracement at 147.83 next.){kind=link}