USD/JPY has snapped a days-long uptrend and is rapidly approaching a key support zone.

Will there be enough buyers at the extent to take care of the pair’s even longer-term uptrend?

The each day chart might give us clues:

USD/JPY Each day Forex Chart by TradingView

The U.S. dollar has been taking hits against its counterparts after this week’s U.S. CPI and PPI reports stoked expectations for multiple rate cuts from the Fed.

Meanwhile, over in Japan, officials have been dropping hints a few potential rate hike as soon as next week.

USD/JPY, which had been climbing steadily since December, not only tumbled from the 158.00 area but additionally broke out of a days-long ascending channel on the each day chart.

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. In case you haven’t yet done your homework on the U.S. dollar and the Japanese yen, then it’s time to ascertain out the economic calendar and stay updated on each day fundamental news!

How low can USD/JPY go before technical buyers step in again?

The 154.50 zone is one to look at, because it lines up with the peak of the channel USD/JPY just broke. It also sits near the Pivot Point at 154.68 and the 38.2% Fibonacci retracement of December’s rally.

Adding to the combo, a trend line just under this area—stretching back to September 2024—might make technical bears think twice about pushing prices lower.

If we see green candlesticks and sustained trading above 155.50, USD/JPY could resume its uptrend, potentially revisiting the 158.00 highs and even reaching recent 2025 peaks.

But when bearish momentum continues, the pair might slip below the each day trend line support. Without solid demand near the 61.8% Fib and the 200 SMA, the dollar could head toward the 152.00 area in the approaching days.

Whichever bias you find yourself trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that would influence overall market sentiment!