USD/JPY Breakdown Faces Crucial Test Ahead of Fed, BoJ Decisions

The USD/JPY breakdown is facing a major test as it approaches key levels ahead of crucial monetary policy decisions from both the Federal Reserve and the Bank of Japan.

According to FOREX.com, the pair's current downtrend has been driven by a combination of factors, including the strength of the US dollar and the weakness of the Japanese yen.

The USD/JPY is currently trading at around 134.50, but FOREX.com warns that it may be due for a major reversal as key technical levels come into play.

As the Federal Reserve prepares to make its next monetary policy decision, investors are bracing themselves for potential rate hikes, which could have significant implications for currency markets.