USD/JPY Price Analysis: Bears eye a 61.8% golden ratio

USD/JPY bears are seeking a deeper correction.
The 50% mean reversion level is holding up, guarding a 61.8% retracement.

Ross J Burland FXStreet

USD/JPY ended the day flat on Wall Street around as markets moved into consolidation ahead of the Federal Reserve. At the time of writing, USD/JPY is trading at 130.16 and has traded between 129.69 and 130.29. The pair is correcting a bullish impulse in the daily charts that was made when the US dollar rallied to 20-year highs last week.

The following illustrates the price in the daily chart and prospects of a deeper retracement:

USD/JPY daily chart

The W-formation is a reversion pattern and so far, the price has corrected into a 50% mean reversion area which is holding up as support. A break of here would be expected to see the price challenge the old highs and presumed support near a 61.8% golden ratio of around 128.60.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD slides as AI sell-off rattles Wall Street

The Aussie Dollar dives 0.11% on Thursday as the US Dollar retreats from monthly highs, with safe-haven flows shifting from the Greenback to the Japanese Yen and the Swiss Franc amid losses on Wall Street and US yields. The AUD/USD trades at 0.6960 at the time of writing.

USD/JPY slips below 158.00 as USD retreats

USD/JPY returns to the red below 158.00 in the Asian session on Thursday amid speculation that authorities will step in to prop up the Japanese Yen. Meanwhile, the US Dollar eases from near an 18-month high on profit taking, ignoring Wednesday's hawkish FOMC Minutes and the risk of a further escalation of tensions in the Middle East, adding to the pair's pullback.

Gold clings to daily gains; still below $4,150

Gold regains some composure and climbs back to the vicinity $4,150 mark per troy ounce amid decent gains on Thursday. The yellow metal’s recovery follows some loss of momentum in the US Dollar strength and a decent drop in US Treasury yields across the curve.

XRP downtrend persists as EMA support strains while Binance reserves swell

Ripple (XRP) sellers are gaining ground on Thursday, as the token slips below $1.40. Sell-side pressure remains intense in the broader crypto market, as seen with leading digital assets, including Bitcoin (BTC) currently below $83,000 and Ethereum (ETH), sliding below $2,600. Despite the correction, XRP retains a constructive technical outlook, with support provided by a key moving average cluster.

Three fundamental drivers are all pushing the Euro south. This chart shows them lining up on 1.1000

EUR/USD has already fallen sharply, but the forces pushing the pair lower are becoming increasingly interconnected. French fiscal concerns, renewed energy pressure and an uncomfortable policy dilemma for the European Central Bank (ECB) are colliding with a US economy that continues to give the Federal Reserve (Fed) little reason to turn dovish.

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.