USD/JPY could see further declines as the corrective phase appears to be complete

USD/JPY fell to a three-week low on Monday, hitting the 76.4% Fibonacci retracement of the 141.68/149.40 corrective upswing, reinforcing signals that the correction within the broader downtrend is nearing completion.

Last week’s sharp 2.1% decline formed a bearish engulfing pattern and closed below the 100-week moving average (144.59), delivering a fresh bearish signal and paving the way for a potential retest of 141.68 (August 4 low, the lowest level since late December).

Both technical and fundamental factors point to an increased likelihood of extended losses for USD/JPY after completing its correction.

A break below key levels at 141.68 and 140.48/25 (61.8% Fibonacci retracement of the 127.22/161.95 move and December 28 low) could trigger further downside momentum, pushing the pair beneath the critical 140 psychological support.

Res: 144.58; 145.04; 146.27; 146.87
Sup: 143.44; 142.58; 141.68; 140.48