USD/JPY Rebounds Exhausted: Downside Bias Returns

The USD/JPY pair's recent price action suggests that its rebound from 155.22 has completed at 159.76, according to Action Forex analysis. This implies a shift in bias towards the downside for retesting of the 155.22 low.

Moreover, strong resistance is expected in the 159.59-160.62 zone, which represents the 50% and 61.8% retracement of the previous price move from 163.97 to 155.22. This could limit further upside potential for the pair.

In the bigger picture, as long as the 155.01 cluster support holds, the larger uptrend is still expected to continue through 163.97 after the current correction completes. However, a firm break of 155.01 would raise concerns about the USD/JPY's larger scale trend and potentially lead to a deeper fall back to 139.87.