USDJPY stretches to the 38.2% retracement target | investingLive

The USDJPY has extended its decline, reaching down to test a key technical level — the 38.2% retracement of the rally from the July 1 low to last week’s high. That retracement level comes in at 146.704, and the pair just printed a session low of 146.705, essentially tagging it.

Following the test, the price has seen a modest bounce, climbing back up to a high of 146.886. That rebound places the pair near the July 16 low of 146.900, which coincided with the sharp market reaction on the day rumors circulated about Fed Chair Powell being fired.

From a technical perspective, sellers are stepping in and attempting to shift momentum MORE in their favor. However, to truly wrest control from the buyers, they need to force a decisive break below the 38.2% retracement at 146.704. Holding above this level keeps the buyers in play, but a break below could open the door toward deeper retracement targets and signal a more sustained correction. The 50% of the same move higher is at 145.94.

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