USD/JPY Rebounds, Falls Back as Resistance Holds
The USD/JPY currency pair rebounded after an initial fall to 155.22 but failed to break through the 38.2% retracement level of 163.97 to 155.22 at 158.56, prompting a reversal.
According to ActionForex, the initial bias is mildly on the downside this week for retesting the 155.22 low, with strong support expected from the 155.01 cluster support area to rebound.
However, as long as the 55 4H EMA (now at 159.32) holds, near-term risk will remain on the downside.
In the bigger picture, if the 155.01 cluster support level holds, the larger up trend is expected to continue through 163.97 after the current correction completes.
However, a firm break of 155.01 could raise the chance that USD/JPY is already in a larger scale correction, potentially leading to a deeper fall back to 139.87 (2025 low) in the medium term.