USD/JPY Daily Outlook: Probing the Boundaries of a Sideways Market

Sideways trading is expected to remain the dominant theme in USD/JPY, with intraday bias largely neutral. On the upside, a sustained move above 159.02 could target 160.38. On the downside, a decisive break below 156.06 may indicate that the rebound from 152.87 has failed to sustain itself above the 55 D EMA. A deeper decline could then be expected to retest the 152.87 low.

Looking at the broader picture, price action from the 163.97 medium-term top is being interpreted as a correction to the rise from 139.87. The first leg could have completed at 152.87, ahead of the 152.25 structural support. A sustained break above the 55 D EMA, currently at 157.90, would open the way to retest the 163.97 high. Nevertheless, strong resistance may be expected there to cap upside. Another falling leg may likely unfold before the pattern completes.

Source link