USD/JPY Pauses After Last Week's Dip, Neutral Bias Remains

The USD/JPY pair saw a brief dip to 157.99 last week but has since recovered.

This week's initial bias remains neutral, with the possibility of a further fall if it breaks below 157.99, potentially retesting the low at 155.22.

However, if the pair rises again, it may encounter strong resistance in the zone between 159.59 and 160.62, which represents a 50% and 61.8% retracement of the previous high to low move.

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

If this support level is broken, it could indicate a larger scale correction and potentially lead to a deeper fall back to the 2025 low of 139.87 in the medium term.