USD/JPY is down nearly 10% from its January 2025 highs at 157, now trading just above the 140 threshold. The currency pair is testing the base of a 10-year rising wedge, and its recent failure to reclaim support at 148.83 is concerning.
Structural Breakdown: If 140 is lost, the potential downside opens to 135, 132, and 127. The last time this pair broke similar structural levels was in 2016–2017, during a major dollar correction.
Macro Pressure: A hawkish BoJ and collapsing US yields are reversing the carry trade. Demand for the Yen as a haven asset is rising amid volatility and equity losses.
Structural Breakdown: If 140 is lost, the potential downside opens to 135, 132, and 127. The last time this pair broke similar structural levels was in 2016–2017, during a major dollar correction.
Macro Pressure: A hawkish BoJ and collapsing US yields are reversing the carry trade. Demand for the Yen as a haven asset is rising amid volatility and equity losses.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.