Bearish
USD/JPY falls 1% on Friday; 'death cross' signal expected next week
On Friday, September 26, 2026, USD/JPY declined by 1%, nearing its largest single-day drop in three weeks. This movement confirmed a technical breakdown, with the pair crossing below a key trendline that had supported gains since April 2025. A 'death cross'—where the 50-day moving average crosses below the 200-day moving average—is anticipated to be confirmed early next week, marking the first such occurrence since March 25, 2025. This pattern suggests a potential reversal of the 17-month bullish trend. Additionally, U.S. Treasury Secretary Scott Bessent has expressed support for a stronger yen, aligning with the Bank of Japan's monetary policy stance.
Key points
- USD/JPY declines 1% on Friday, nearing largest single-day drop in three weeks.
- Technical breakdown confirmed; pair crosses below key trendline supporting gains since April 2025.
- 'Death cross' pattern expected to be confirmed early next week, indicating potential trend reversal.
- U.S. Treasury Secretary Scott Bessent supports a stronger yen, aligning with Bank of Japan's policy.
Sources
AI-generated from public news sources. Not financial advice.
