USD/JPY Traders Await Break Above Key Resistance

The USD/JPY currency pair has been trading in a sideways pattern below the key resistance level of 159.02, according to Action Forex's analysis. The initial bias for this week remains neutral as traders wait for a break above or below this crucial threshold.

If the price surpasses 159.02, it would likely resume its rebound from the 152.87 support level, targeting the key structural resistance at 160.38. However, if the price breaks below 156.36, it could lead to a deeper fall back to 152.87.

The bigger picture suggests that the current correction is part of a larger trend, with the USD/JPY price action viewed as correcting the rise from the 139.87 low. The first leg of this correction may have completed at 152.87, ahead of the key support level at 152.25.

The long-term outlook remains bullish as long as the 139.87 support holds, even in case of a deep pullback. This suggests that the up trend from the 75.56 low (2011) is still intact and may resume after the current correction completes.