USD/JPY’s break of 158.58 minor support suggests that rebound from 155.22 has completed at 159.76. Intraday bias is back on the downside for retesting 155.22 low. In case of another rise, strong resistance should be seen from 159.59 to 160.62 zone (50% and 61.8% retracement of 163.97 to 155.22) to limit upside.
In the bigger picture, as long as 155.01 cluster support (38.2% retracement of 139.87 to 163.97 at 154.76) holds, the larger up trend is still expected to continue through 163.97 after current correction completes. However, firm break of 155.01 will raise the chance that USD/JPY is already in a larger scale correction, and open up deeper fall back to 139.87 (2025 low) in the medium term.
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