USD/JPY Daily Outlook

ActionForex reports that USD/JPY's intraday bias remains neutral as the currency pair consolidates recent price swings. Should the pair stage an extended rally, upside momentum is expected to encounter significant resistance in the 159.59 to 160.62 zone, which corresponds to the 50% and 61.8% Fibonacci retracements of the fall from 163.97 to 155.22. On the downside, a break below the 157.99 support level would likely prompt a retest of the 155.22 low. From a larger technical perspective, the broader bullish trend remains intact provided that key cluster support at 155.01 holds. This support level aligns closely with the 38.2% retracement of the 139.87 to 163.97 advance at 154.76. If this level continues to protect the downside, the larger uptrend is projected to eventually resume beyond 163.97 once the corrective phase concludes. Conversely, a sustained break below 155.01 would indicate a deeper, larger-scale correction targeting the medium-term low around 139.87.