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USD/JPY slips below 155 as yen strength gains traction

MUFG said USD/JPY briefly traded under 154.50 and may face further downside toward key retracement levels unless it quickly reclaims 155.

Reported · Written up by our desk · Major Pairs

MUFG currency strategist Teppei Ino said USD/JPY has fallen below the bank’s 155 forecast floor, briefly trading under 154.50 while testing technical Fibonacci retracement levels.

The note cited a shift in Japan specific factors that are supporting yen strength, alongside waning dollar buying momentum linked to Fed expectations.

MUFG also pointed to comments from US Treasury Secretary Scott Bessent after G20 meetings, including remarks that Japan should move away from its reflationary policies.

From a technical perspective, MUFG said the break below 155 on September 7, when US markets were closed for Labor Day, coincided with a move briefly below the 38.2% retracement of the April 2025 low above 139.50 to the July 2026 high just below 164, which brings the January low below 152.50 and the 50% retracement level above 151.5 into focus. The bank warned that if USD/JPY does not quickly recover above 155, markets may start treating 155 as the top of a new range.

Latest closeUSD/JPY 158.82 ▼0.9%

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