USD/JPY Faces Major Test Ahead of Fed, BoJ Decision

The Japanese Yen has taken a significant hit in recent times, plummeting over 6.7% from its pre-intervention highs following last week's confirmed break of the 2025 trend structure.

As the pair approaches a major support cluster near the yearly lows, risk for inflection ahead is increasing.

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 and next week's Fed and BoJ decisions will play a crucial role in determining whether the selloff has further to run or begins to stabilize.