USD/JPY breaks below the 150 support level after a 1% decline on Thursday

USD/JPY Drops Sharply as Yen Strengthens on BoJ Policy Expectations

USD/JPY saw a sharp decline on Thursday morning as the yen gained fresh momentum amid rising expectations of a more aggressive monetary policy stance from the Bank of Japan.

The pair dropped nearly 1% during Asian and early European trading, breaking below the psychological 150 support level for the first time since December 9. This support, reinforced by the lower 20-day Bollinger Band, provided a temporary floor, where bears may take a pause for consolidation.

Any recovery is expected to stay capped below the 151.00 zone to maintain bearish momentum. A firm break below 150 would confirm a bearish continuation, exposing the next downside targets at 149.22 and 148.64 (50% Fibonacci retracement of the 139.57–158.87 rally and the December 3 higher low, respectively).

Technical indicators support the bearish outlook, with moving averages in a bearish setup, strong negative momentum, and the recent formation of a 20/100-day moving average bear cross.

However, a break above 151.00, and particularly a move past 151.50 (the broken 38.2% Fibonacci retracement), would weaken the bearish scenario and signal a potential stronger recovery.

Res: 151.00; 151.50; 152.05; 152.59
Sup: 150.00; 149.22; 149.00; 148.64