Daily Pivots: (S1) 157.62; (P) 158.01; (R1) 158.74; More…
USD/JPY’s extended rally and break of 157.92 resistance suggests that pullback from 160.71 has already completed at 155.01. Intraday bias is now on the upside for retesting 160.71 next. As this rebound is seen as the second leg of the corrective pattern from 160.71, strong resistance should emerge from there to limit upside. On the downside, break of 157.30 minor support will argue that the third leg could have started, and target 155.01 support instead.
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 154.13) will dampen this view and bring deeper fall back towards 139.87 to extend the pattern from 161.94.
