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The USD/JPY pair experienced a sharp decline last week, confirming a medium-term top at 163.97, driven by a bearish divergence in the MACD indicator. This downturn is viewed as a correction of the entire upward move from 139.87. The initial bias for the upcoming week remains bearish, targeting the 155.01 cluster support level, which represents the 38.2% retracement of the 139.87 to 163.97 range. A strong support level is expected to be seen at this cluster. The decline in USD/JPY has significant implications for forex traders, particularly those involved in the Asian session. A break below the 155.01 support could lead to further losses, while a bounce from this level might provide a buying opportunity. Traders should closely monitor the price action around this support level to gauge the pair's next move. The medium-term outlook for USD/JPY remains bearish, with the potential for further declines. However, traders should be cautious of potential reversals, especially if the pair finds strong support at the 155.01 level. The upcoming week's trading will be crucial in determining the pair's direction, and traders should be prepared for possible volatility.
