The USD/JPY currency pair has witnessed a significant price action, extending its downside move from the 160.21 level to as low as 151.86. However, the subsequent bounce from this low has reached as high as 154.52, suggesting that the downside move from 160.21 has likely completed.
With this development, further rallies in the USD/JPY are anticipated in the coming days. The next target for the bulls is the 155.00 level, followed by the 156.30 area. If the pair manages to surpass these resistance zones, it could potentially aim for the 158.00 area.
However, it’s important to note that the path higher may not be without obstacles. The initial support for the USD/JPY is currently situated at the 153.30 level. If the pair encounters selling pressure at this level and fails to hold above it, it could potentially trigger another decline, potentially leading to a retest of the 151.86 support.
Should the USD/JPY break below the 151.86 level, it would indicate that the downside move from the 160.21 high has potentially resumed. In such a scenario, the next target for the bears would be the 150.26 support level.
In summary, the USD/JPY has witnessed a notable bounce from the 151.86 low, suggesting that the recent downside move may have concluded. The pair is now facing potential upside momentum, with the 155.00, 156.30, and 158.00 levels serving as the next targets for the bulls.
However, traders should remain vigilant and closely monitor the price action around the 153.30 and 151.86 support levels, as a breakdown below these levels could potentially negate the bullish outlook and potentially pave the way for a resumption of the downtrend, with the 150.26 level acting as the next target for the bears.
Traders and investors are advised to stay agile and adapt their strategies based on the evolving price action in the USD/JPY currency pair.