USD/JPY Struggles as Key Fibonacci Support Comes into Focus

USD/JPY has extended its decline, now testing the 61.8% Fibonacci retracement level near 146.95, a key support zone. The pair remains under pressure after failing to reclaim 151.50, where the 38.2% retracement and the 200-day EMA converge.

Key Technical Observations:

• Fibonacci Support Test: The 61.8% retracement level is being challenged, making this a critical decision point. A confirmed breakdown below 146.95 could open the door toward 143.70 (78.6% retracement).
  
• Bearish EMAs: The 50-day EMA and 200-day EMA are sloping downward, reinforcing the bearish momentum.
  Momentum Indicators:
• RSI is approaching oversold levels, suggesting a short-term bounce could emerge. However, the broader trend remains weak.
  
• MACD remains in negative territory, signaling continued downside pressure.
  Key Levels to Watch:
• Support: 146.95 (61.8% retracement), 143.70 (78.6% retracement).
  
• Resistance: 149.20 (50% retracement) and 151.50 (200-day EMA & 38.2% retracement).
  

USD/JPY is at a critical juncture. Holding 146.95 could trigger a short-term rebound, but failure to do so would reinforce the bearish case, targeting the mid-143s. Bulls need to reclaim at least 149.20 to shift the structure back toward neutral.

-MW