USD/JPY reaches inflexion point as critical support breaksUnited States Dollar / Japanese YenCMCMARKETS:USDJPYcmcmarketsUSD/JPY has fallen below technical support at ¥155 as markets increase bets on a Bank of Japan rate hike at the upcoming monetary policy meeting on 18 September. Markets are currently pricing in two rate hikes by January 2027, which would take the overnight interest rate to 1.5%. This is the first time USD/JPY has traded below ¥155 since February 2026, despite multiple attempts to break support since then. A close below ¥155, with follow-through, could suggest that USD/JPY has further to decline and may result in a test of support at ¥152.25. The one factor working against a further move lower in the short term is that USD/JPY is now oversold, trading below its lower Bollinger Band, with the relative strength index (RSI) below 30. This suggests the pair may be due for either a rebound or a period of sideways consolidation. A rebound could see USD/JPY test its 20-day moving average. However, a close below support at ¥155 with follow-through would turn that former support level into resistance, which could be difficult for USD/JPY to move back above given how strong the level had previously been. The move lower may therefore signal a longer-lasting shift in trend, putting USD/JPY at a potential inflexion point. Written by Michael J. Kramer, founder of Mott Capital Management. Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction, or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.