The USD/JPY pair showed a choppy rise from 151.86 and broke through the 157.70 resistance last week. This led to a continuation of the upward movement, with the initial bias leaning towards the upside for the upcoming week. There is a possibility of a further rally to retest the 160.20 high, although any upward movement is likely to be capped at that level, at least initially. If the price falls below the 156.57 minor support, the intraday bias could shift to a more neutral stance.
Looking at the bigger picture, the recent price actions following the 160.20 medium-term top are viewed as a corrective pattern within the broader upward trend from 150.25. It is anticipated that there will be another rally in the future, possibly surpassing 160.20 to continue the overall uptrend. However, a clear break of the 150.87 level would suggest that a larger correction might be underway, with a downside target of 146.47 support.
In the long-term perspective, as long as the 140.25 support holds, the upward trend from the 75.56 low in 2011 is still considered to be ongoing. The next target projection stands at 172.08, which is 138.2% of the move from 75.56 (2011 low) to 125.85 (2015 high) starting from 102.58.
It is important for traders to keep a close eye on these key levels and price movements to gauge the potential future direction of the USD/JPY pair. Market participants should also consider external factors such as economic indicators, geopolitical events, and central bank policies that could influence the currency pair’s movements in the coming weeks and months. By staying informed and conducting thorough analysis, traders can make more informed decisions and navigate the fluctuations in the forex market effectively.