USD/JPY Retreats to 155.65 - Technical Correction or Reversal Signal?

USD/JPY has pulled back to 155.65, declining 0.8% (125 pips) from last week's multi-month high of 156.90, raising questions about whether this represents a healthy correction or the beginning of a trend reversal. The retreat comes amid profit-taking activities and verbal intervention concerns from Japanese officials, with Finance Minister Suzuki warning against excessive yen weakness. Technical analysis reveals the pair has broken below the ascending trendline support at 155.80, with the next major support level at 154.50 (38.2% Fibonacci retracement). The Dollar Index has simultaneously weakened to 106.20 (-0.3%), adding pressure to USD/JPY. RSI indicators have cooled from overbought territory above 70 to a more neutral 58, suggesting room for further downside. Traders are closely monitoring the 155.00 psychological level, where significant buying interest emerged during previous corrections. A sustained break below could accelerate losses toward 153.50.