USD/JPY slid to 152.87 last week before turning sideways, leaving the near-term bias neutral. Analysts see further downside toward the 149.07 Fibonacci level if 154.79 resistance holds, but a break above it would point to a short-term bottom. The medium- and long-term picture still frames the current slide as a correction within a larger uptrend.
USD/JPY fell to 152.87 last week before turning sideways, leaving the initial bias neutral for some consolidation this week. Further decline is expected as long as the 154.79 minor resistance holds, and a break below 152.87 would extend the fall from 163.79 toward the 149.07 Fibonacci retracement level. On the upside, a break of 154.79 would instead indicate short-term bottoming and bring a stronger rebound toward the 55 4H EMA, now at 155.51, and possibly higher.
In the bigger picture, the fall from the 163.97 medium-term top is at least correcting the up trend from 139.87. A deeper decline could reach the 61.8% retracement of the 139.87-to-163.97 move at 149.07. A firm break there would raise the chance of a larger bearish reversal targeting the 139.87 support level. Risk stays on the downside as long as 160.38 resistance holds, in case of a rebound.
The long-term outlook stays bullish as long as 139.87 support holds, even in case of a deep pullback. The uptrend from 75.56, the 2011 low, is still favored to resume once the current correction from 163.97 completes.
Source: ActionForex
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