USD/JPY Price Analysis: Daily 38.2% correction before test of monthly resistance

USD/JPY has melted below the monthly support area but has started to stall on US dollar strength.
An upside bias on the lower time frames would coincide with a restest of the monthly structure.

Ross J Burland FXStreet

The following is a top-down analysis that illustrates the market's structure and the probability of a bullish correction on the monthly and weekly charts following a downside correction on the daily chart.

Monthly chart

While the price has penetrated below monthly support, the structure would now be expected to act as resistance on a re-test.

Weekly chart

The bullish weekly W-formation is a bottoming pattern.

The price could be set to close above the support structure and trendline resistance this week.

Daily chart

From a daily perspective, here we have an overextended W-formation within a weekly W-formation.

Before extending higher, the price would be expected to correct back to towards the neckline of the weekly formation which meets with a daily 38.2% Fibonacci retracement level and prior resistance.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD risks a deeper drop below 1.1750

EUR/USD keeps its vacillating mood in place as the the NA session drwas to a close on Tuesday, hovering below the 1.1800 hurdle amid acceptable gains in the US Dollar. In the meantime, market participants and the FX galaxy are expected to closely follow President Trump’s SOTU speech around 2AM GMT.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Coinbase launches stocks and ETF trading amid ongoing plans for all-in-one platform

Coinbase has launched stocks and ETF trading for US customers on its platform, according to an X post on Tuesday. The service offers commission-free trading available 24 hours a day, five days a week, for eligible securities. Traders deposit US dollars or USDC to fund positions and access fractional shares as low as $1.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.