USD/JPY stayed in a range below 159.02 last week, and ActionForex keeps its near-term bias neutral. A break above that level targets 160.38, while a firm break of 156.06 would argue the rebound from 152.87 has completed, with a deeper fall then seen back to that low.
USD/JPY stayed in range below 159.02 last week, and ActionForex says the initial bias remains neutral for the new week. A move above 159.02 would target 160.38.
On the downside, a firm break of 156.06 would argue that the rebound from 152.87 has completed after failing to sustain above the 55 D EMA. A deeper fall should then take the pair back to the 152.87 low.
In the bigger picture, ActionForex reads the move from the 163.97 medium term top as a correction of the rise from 139.87. The first leg could have completed at 152.87, ahead of 152.25 structure support.
However, a sustained break above the 55 D EMA, now at 157.90, would pave the way back to retest the 163.97 high. Strong resistance should be seen there to cap upside, and there would likely be another falling leg before the pattern completes.
The long term outlook stays bullish as long as 139.87 support holds, even in case of a deep pullback. The up trend from the 2011 low of 75.56 is still in favor to resume once the correction from 163.97 completes.
Source: ActionForex
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