USD/JPY Plunges 6.7%, Faces Major Test Ahead of Fed and BoJ Decisions

The Japanese yen has continued its decline against the US dollar, plummeting over 6.7% from its pre-intervention highs after last week's break of the 2025 trend structure.

This major technical breakdown extended the reversal from the yearly highs and has left the pair under heavy pressure as it approaches a key support cluster near the yearly lows.

Momentum has become increasingly stretched, raising the stakes for the next reaction as U.S. CPI is set to be released on Friday, followed by highly anticipated Fed and Bank of Japan rate decisions next week.