USD/JPY is currently in a phase of consolidation below the temporary peak of 149.97, leading to a neutral bias for the short term. The expectation is for a continuation of the rally as long as the support turned resistance level of 146.48 remains intact. A breakthrough above 149.97 would signal a resumption of the upward movement from 139.57 towards the 61.8% retracement level at 153.39. On the other hand, a decisive break of 146.48 could indicate the completion of the rebound, shifting the bias towards a retest of the 139.57 low.
Looking at the broader picture, the price actions from 161.94 are interpreted as a corrective pattern within the larger uptrend from the 2021 low of 102.58. This suggests that the medium-term consolidation range is forming between the 38.2% retracement level at 139.26 and the high at 161.94. However, a sustained breach of 139.26 could pave the way for a deeper decline towards the 61.8% retracement level at 125.25.
It is important for traders and investors to closely monitor these key levels and price movements to make informed decisions regarding their USD/JPY positions. The currency pair’s interaction with the support and resistance levels mentioned will be crucial in determining the future direction of the trend. Stay tuned for further updates and analysis as the market situation evolves.
