The USD/JPY pair saw a significant increase last week, rising from 151.68 to 159.81, showing no clear signs of a peak yet. The initial bias for this week remains on the upside, with a target of 160.20 or even potentially hitting 160.37. However, it is expected that the upward momentum may be limited upon reaching these levels.
If the price falls below 158.24, the intraday bias may turn neutral initially. But a decisive break of 160.37 could open the path towards a 161.8% projection at 163.97.
Looking at the bigger picture, there are no indications of a long-term trend reversal at the moment. As long as the support at 150.87 holds, a further rally is anticipated. A clear break of 160.02 could lead the price to target the 164.94 level, which is the 100% projection of the move from 127.20 to 151.89 from 140.25.
In the long term scenario, as long as the support at 140.25 remains intact, the upward trend from the 2011 low of 75.56 is still ongoing. The next target after this would be the 138.2% projection at 172.08, which is calculated from the move between 75.56 (2011 low) to 125.85 (2015 high) from 102.58.
It is important for traders and investors to closely monitor the price movements and key support levels to assess the potential outcomes for the USD/JPY pair in the coming weeks and months. The currency pair’s performance is influenced by various factors, including economic data, geopolitical events, and market sentiment, which can all impact its direction and volatility. By staying informed and conducting thorough analysis, market participants can make well-informed decisions when trading the USD/JPY pair.