USD/JPY Daily Outlook

Daily Pivots: (S1) 146.83; (P) 147.48; (R1) 148.41; More…

The USD/JPY currency pair is currently in a consolidating phase, trading above the 146.52 level. At this point, the intraday bias remains neutral. It is expected that any upward movement may face resistance near the 150.92 level, where prior support has turned into resistance.

On the downside, if the price remains below the 61.8% retracement level from 139.57 to 158.86, which is positioned at 146.32, it could set the path towards the support level at 139.57.

Looking at the bigger picture, the price movements since reaching 161.94 are interpreted as a corrective phase. This correction follows a rise from a low of 102.58 in 2021, and the decline from 158.86 is seen as the third leg of this correction. A significant support zone is marked by the 38.2% retracement level from 102.58 to 161.94, located at 139.26, which is believed to provide a rebound opportunity. However, if the price breaks firmly below this level, it could signal a deeper decline in the medium term, potentially reaching the 61.8% retracement at 125.25.

Traders and analysts will be closely monitoring these levels, as they indicate potential turning points for the USD/JPY pair. Understanding these levels will help in making informed decisions about trading strategies moving forward.

USD, JPY, Analysis