USD/JPY Price Analysis: Bears lurk near 134.50 for a downside correction

• USD/JPY is carving out prospects for a deeper correction.
• The bullish bias prevails while in the front of the broader uptrend line.

The pair USD/JPY It was down 0.26% and lost ground in late New York trade within the day’s range of 134.01, the previous low and latest Asian high of 134.97.

Based on the above analysis, USD/JPY Price Analysis: Bulls Move to Test Bears Near 135.00, Price Moved towards Resistance and Bulls Throw in the Towel and Structure Breakout Leaves Focus in a fuller correction to the downside as illustrated below:

USD/JPY, previous analysis

USD/JPY 4-hour chart

The overall bullish scenario, above, was said to forecast prospects for a micro trend line breakout and a move to test 134 before bulls recommit for upside momentum, according to the formation’s outlook. W weekly explained and illustrated in the analysis above. A more bearish scenario then highlighted the chances of a break at the broader trend line support.

USD/JPY Update

We are seeing a break of the structure at 134.25, which leaves the focus to the downside.

However, a bullish correction of the breakout of the structure is underway and the following offers a potential price path that encompasses a correction and then a bearish continuation:

Pulling on the Fibonacci scale, we can see that previous support aligns with a cluster of Fibos between the 38.2% and 61.8% ratios and a 50% mean reversion in between.