Buy the Dip Turns into Sell the Rip: USD/JPY Shows Signs of Reversal

The USD/JPY pair has been showing signs of a potential shift in its long-term bullish trend. For the past five years, the pair has maintained a bullish bias, but recent developments suggest that this may be changing.

This week's rate decisions from both Japan and the US are expected to have an impact on the pair. Scott Bessent, known for his accurate predictions, has hinted at what the Bank of Japan will do, and traders are eagerly awaiting the outcome.

The trend in USD/JPY is clear when looking at its weekly chart: a clear bullish lean over five-plus years with several aggressive retracements. However, the past month has seen a change-of-pace, raising concerns about a larger retracement ahead.