USDJPY Extends Downward Trend Amid Ongoing Correction

The USD/JPY exchange rate fell sharply last week and has yet to show signs of recovery. At present, market analysts believe that the initial bias remains on the downside this week.

The focus is on the key support zone between 154.76 and 155.01, which is expected to provide strong support and potentially bring a rebound. However, if there's a decisive break through this zone, it will likely carry larger bearish implications.

In terms of long-term prospects, as long as the cluster support at 155.01 holds (which corresponds to the 38.2% retracement of the range from 139.87 to 163.97), the larger uptrend is expected to continue through 163.97 after this correction completes.

However, a firm break of 155.01 will raise the likelihood that USD/JPY is already in a larger-scale correction and may lead to a deeper fall to 61.8% retracement at 149.07 next.