Daily Pivots: (S1) 132.06; (P) 133.59; (R1) 134.95; More…
USD/JPY’s fall from 137.90 resumed by breaking 132.27 and intraday bias is back on the downside. Sustained break of 61.8% retracement of 127.20 to 137.90 at 131.28 will pave the way to retest 127.20 low. On the upside, break of 135.10 resistance is needed to confirm completion of the decline. Otherwise, risk will stay on the downside in case of recovery.
In the bigger picture, rebound from 127.20 should have completed at 137.90 as a corrective move, with strong break of 55 day EMA. The down trend from 151.93 (2022 high) is not over yet. Break of 127.20 will resume this down trend and target 61.8% projection of 151.93 to 127.20 from 137.90 at 122.61. This will now be the favored case as long as 137.90 resistance holds.
