USD/JPY Loses Momentum as Resistance Looms Ahead

The USD/JPY has rebounded from its recent low of 155.22 but appears to be losing momentum, according to Action Forex's latest analysis.

The currency pair had risen as high as 159.22 after hitting the 55-period exponential moving average (EMA), but strong resistance is expected to emerge at the 50% and 61.8% retracement levels of 163.97 to 155.22, specifically between 159.59 and 160.62.

On the downside, a firm break below 158.58 would shift the bias back to the downside, potentially leading to a deeper pullback.

In the bigger picture, as long as the cluster support at 155.01 holds, the larger uptrend is still expected to continue through 163.97 after the current correction completes.