USD/JPY Tests Trend Support—Breakdown Risk BuildsU.S. Dollar / Japanese YenFOREXCOM:USDJPYFOREXcomThe USD/JPY rally was halted into the close of March at a key resistance barrier around the April 2024 high and the 2024 high-week close at 160.22/74. Ongoing momentum divergence into the highs suggests the multi-month advance may be vulnerable here. USD/JPY is now poised to mark a third consecutive daily decline with the price testing the lower bounds of a rising wedge formation extending off the March swing lows. We are looking for a reaction off this slope with a break / daily close below needed to invalidate this formation and suggest a larger correction is underway. USD/JPY is trading within the confines of a proposed descending pitchfork formation with price breaking below the 75% parallel yesterday. A break below the March slope would threaten a decline towards pivotal support at the 38.2% retracement of the late-February advance and the 2025 high-day close (HDC) at 157.33/70. Note that the median-line converges on this threshold into the close of the week and losses below this threshold would be needed to suggest a more significant high is in pace and a larger trend reversal is underway. Subsequent support objectives rest with the yearly open at 156.67 and the March open at 156.05. Initial resistance is eyed at the 2025 swing high at 158.88 and is backed by near-term bearish invalidation the yearly high-day close (HDC) at 159.70. Ultimately, the bulls would need to clear the 2024 HWC at 160.74 to mark uptrend resumption and fuel the next major leg of the rally towards the 2024 high-day & high-week closes (HDC / HWC) at 161.69/95. Bottom line: The USD/JPY is testing support at the March uptrend- looking for a reaction off this slope. From a trading standpoint, rallies would need to be limited to 159.70 IF price is indeed heading lower on this stretch with a close below the March trendline needed to fuel the next leg lower in price. -MB