Forex
USD/JPY Selloff Accelerates Ahead of Crucial Inflation Data and Fed Decision
The Japanese Yen has plummeted over 6.7% from its pre-intervention highs following last week's confirmed break of the 2025 trend structure.
Despite the broader technical outlook remaining lower, the selloff is approaching a major support cluster near the yearly lows, increasing the risk for inflection ahead.
The U.S. CPI data on Friday and the upcoming Fed and BoJ decisions next week will be crucial in determining whether the selloff has further to run or begins to stabilize.
The pair is approaching a major technical hurdle near the yearly lows, with a sustained break lower exposing another major leg of the decline, while a larger recovery could reset positioning for the bears.