**USD/JPY Tests Bearish Corrective Trendline: Comprehensive Analysis**
*Based on the analysis by Economies.com, June 10, 2025.*
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The USD/JPY currency pair remains at the forefront of forex traders’ attention as it tests significant technical levels that could determine its trajectory in the near term. The analysis by Economies.com delves into the underlying technical and fundamental dynamics currently shaping the pair, focusing particularly on its interaction with the prevailing bearish corrective trendline. The following article expands upon their insights, offering an in-depth exploration suited for both short-term traders and strategic long-term investors.
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### Technical Analysis Overview
#### Key Technical Levels
USD/JPY has recently approached and tested the bearish corrective trendline that has guided price action for the past several weeks. The pair is oscillating close to the 157.50 psychological mark, attempting to break above resistance. For context, the major technical levels to observe include:
– **Support Levels**: 156.80, 156.00, 155.50
– **Resistance Levels**: 157.80, 158.30, 159.00
The 50-period moving average aligns with immediate resistance, reinforcing the importance of a clear breakout for the bulls. Oscillators such as RSI hover around the neutral 50 mark, while MACD suggests subdued momentum as the price consolidates.
#### Trendline Dynamics
The current trendline, established after a series of lower highs from last month’s selloff, acts as a clear demarcation between corrective bearish action and the potential for bullish resumption. The pair’s ability to sustain a close above this trendline—confirmed by at least a daily candle—would signal renewed bullish sentiment and possibly a retest of year-to-date highs.
##### Bearish Scenario
If USD/JPY fails to break and hold above the trendline, several technical implications may arise:
– Bears may seize control, leading to a reaction towards the aforementioned support zones.
– A decisive move below 156.00 opens the path for a deeper correction toward 155.50 and possibly further, contingent on the velocity of the ensuing selloff.
– Trend-following indicators would likely align with sellers, compounding downward price pressure.
##### Bullish Scenario
However, should the pair manage a convincing breach of the corrective barrier:
– A wave of buying could see immediate upside challenges of the 158.30 and 159.00 levels.
– Momentum oscillators would likely cross into bullish territory, providing confirmation to aggressive traders.
– A sustained move northward may realign the broader trend, especially if fundamentals simultaneously favor the dollar.
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### Fundamental Catalysts Shaping USD/JPY
#### US Economic Pulse
Recent economic releases from the United States have played into the narrative surrounding the US dollar.
– **Non-Farm Payrolls Beat**: Stronger than expected job creation figures continue to underscore resilience in the American labor market, which generally supports the US dollar through assumptions of continued consumer spending and closely monitored inflation risks.
– **Federal Reserve Rhetoric**: Policymakers have maintained a cautious, datacentric stance, with little clarity on exact timing for any potential interest rate cuts. The uncertain monetary policy path injects both opportunity and volatility into USD pairing, including USD/JPY.
#### Bank of Japan (BoJ) Policy Outlook
Japan’s central bank remains a wildcard in the equation:
– **Yield Curve Control**: The BoJ’s gradual move away from ultra-easy policy, albeit slow, has increased market sensitivity to subtle hints from officials.
– **Inflation and Wage Growth**: Despite nascent inflationary pressures, BoJ officials are hesitant to signal aggressive normalization, as wage data and inflation expectations remain mixed.
– **Currency Intervention Risk**: The Ministry of Finance and BoJ have not shied away from verbal or direct intervention when the yen deviates sharply. This risk lurks on any abrupt USD/JPY sur
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