Daily Pivots: (S1) 131.51; (P) 133.41; (R1) 134.79; More…
USD/JPY’s recovery from 130.38 should have completed at 135.57 and fall from 139.37 is resume to resume. Intraday bias is back on the downside for 130.38 support first. Break there will target 100% projection of 139.37 to 130.38 from 135.57 at 126.58. As such decline is seen as a corrective move, strong support should be seen from 126.35 to contain downside. But for now, risk will remain on the downside as long as 135.57 resistance holds, in case of recovery.
In the bigger picture, fall from 139.37 medium term top is seen as correcting whole up trend from 101.18 (2020 low). While deeper decline cannot be ruled out, outlook will stays bullish as long as 55 week EMA (now at 121.84) holds. Long term up trend is expected to resume through 139.37 at a later stage, after the correction finishes.
