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

The Japanese Yen's short-term outlook is precarious as USD/JPY approaches a major support cluster near the yearly lows.

Last week's decline confirmed a break of the 2025 uptrend, and the selloff has continued to accelerate, with daily RSI slipping into oversold territory.

While the broader technical outlook remains weighted to the downside, the reaction at this support region will be crucial in determining whether the bears have further to run or if the pair begins to stabilize.