Daily Pivots: (S1) 157.03; (P) 158.24; (R1) 159.12; More…
USD/JPY’s fall from 161.94 is seen as correcting the whole five-wave rally from 140.25. Deeper decline is in favor and sustained trading below 55 D EMA (now at 157.67) will affirm this bearish case. Next target will be 38.2% retracement of 140.25 to 161.94 at 163.65. Nevertheless, break of 159.44 will turn bias back to the upside for stronger rebound.
In the bigger picture, as long as 151.89 resistance turned support holds, long term up trend could still continue through 161.94 at a later stage. Next target will depend on the depth of the current correction from 161.94. However, sustained break of 151.89 will argue that larger scale correction or trend reversal is underway.
