USD/JPY at Crucial Juncture Ahead of Key Economic Data Releases
The Japanese Yen has been under intense pressure after its decline last week confirmed a major technical break and extended the reversal from the yearly highs. The USD/JPY pair has plunged more than 6.7% from the pre-intervention highs, with bearish momentum accelerating rapidly.
According to technical analysis, the selloff is approaching key support objectives near the yearly lows, raising the stakes for the next reaction. A sustained break lower would expose another major leg of the decline, while a larger recovery could reset positioning for the bears.
The upcoming U.S. CPI report on Friday and highly anticipated Fed and Bank of Japan rate decisions next week are crucial in determining whether the selloff has further to run or begins to stabilize.