• USD/JPY has seen a 148.63-149.62 range, on Wed, reached 148.56 on Tuesday

• Spot has broken under Dec's 148.65 (EBS) low, but with little follow through

• However, USD/JPY downside options driven to new 2025 highs

• Highlights market fears that deeper USD/JPY declines will eventually come

• A weekly close under the 149.23 broken Fibo would be bearish

• 149.23 Fibo is a 50% retrace of the 139.58 to 158.88 (Sept to Jan) EBS rise

• USD/JPY and EUR/JPY tend to move in tandem with each other

Weekly Chart:

(Martin Miller is a Reuters market analyst. The views expressed are his own)