USDJPY Further Downside Correction Bias (But Underlying Bull Theme Intact)

Technical Analysis


The further plunge through 123.73 and 122.76 supports leaves a negative tone still for Wednesday, but whilst above 121.53 still seen as corrective within the bigger picture breakout.

We still see a more positive underlying tone intact after the May breakout from the multi -month range and the push above the 2002 peak at 125.81 to push USDJPY to its highest level for over 13 years!

For Today:

  • We see a downside bias for 122.36; break here aims for 121.53, which we would look to try to hold.
  • But above 123.35 opens risk up to 123.73/76 and maybe closer to 124.62.

Short/ Intermediate-term Outlook – Upside Risks:

  • We see a positive tone with the bullish threat to 125.81/85.
  • Above here targets 129.08 and 130.00.

What Changes This? Below 121.53 signals a neutral tone, only shifting negative below 120.64.

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