USD/JPY Breakdown Faces Major Test Ahead of Fed and BoJ

The Japanese yen has taken a beating against the US dollar, plummeting over 6.7% from its pre-intervention highs due to a confirmed break of the 2025 trend structure.

Last week's decline marked a significant technical shift in the market, with bearish momentum accelerating as the pair approaches key support objectives near the yearly lows.

The focus now shifts to a possible price inflection in this region, with the reaction likely to offer guidance on the next major directional move.