USD/JPY Bearish Trend Continues Amid Strong Resistance
The USD/JPY currency pair is currently in a mildly bearish trend, according to Action Forex's analysis. A rebound from 152.87 has likely completed at 159.02, which is below the 61.8% retracement of 163.97 to 152.87 at 159.72. This suggests that a deeper fall should be seen to retest the 152.87 low.
In the bigger picture, price action from 163.97 is considered a correction of the rise from 139.87. The first leg could have completed at 152.87, ahead of the 152.25 structure support. A sustained break above the 55-day Exponential Moving Average (EMA), currently at 158.22, would pave the way back to retest the 163.97 high.
However, strong resistance is expected at this level to cap upside. Action Forex suggests that another falling leg may occur before the pattern completes.