USDJPY: Correction or Trend Reversal? What Traders Need to Know

USDJPY has been in decline, falling from a high of 149.36. The pair recently touched a low of 144.45.

Short-Term Outlook:

  • The current downward movement could continue as long as the price stays below the 147.34 resistance level.
  • If this trend persists, we might see the pair test the 143.60 area next.

Big Picture View:

  • It’s important to note that this decline is likely a correction within a larger uptrend that started at 141.68.
  • This suggests that after this correction plays out, we might see another push higher.

Key Levels to Watch:

  1. Resistance: 147.34
    • A break above this level could signal that the uptrend is resuming.
    • If breached, the next target would be the previous high of 149.36.
  2. Further Upside Potential:
    • If the pair manages to climb above 149.36, it could potentially aim for the 152.00 area.

What This Means for Traders:

  • Short-term traders might look for further downside, keeping an eye on the 143.60 level.
  • Longer-term traders should be prepared for a potential resumption of the uptrend, especially if the price breaks above 147.34.

Remember, forex markets can be volatile, so always use proper risk management techniques in your trading.