USD/JPY Extends Bearish Momentum, Drops 1.1% in Early Trading

USD/JPY continued its downward acceleration for a second consecutive session, falling 1.1% during Asian and European trading hours on Wednesday.

The primary drivers of the decline were increased demand for the yen as the month-end and fiscal year-end approached, coupled with a pause in dollar strength as bulls took a breather for correction.

Fresh weakness pushed the pair below key pivot levels, including:
– 152.69 (23.6% Fibonacci retracement of the 139.57–156.74 rally),
– 151.97 (200-day moving average), and
– 151.33, a higher low from November 5, which had supported the broader uptrend.

The breach of these levels adds to growing bearish signals, which require confirmation with a daily close below these supports to solidify the downside outlook.

Technical Indicators
– Momentum: The 14-day momentum indicator has turned negative, signaling increased bearish pressure.
– Moving Averages: The 10, 20, and 30-day moving averages have shifted into a bearish alignment, further supporting downside risks.

The focus now shifts to critical supports at 150.15/150.00 (38.2% Fibonacci retracement and psychological level). A clear break here could accelerate bearish momentum.

Alternative Scenario
If the pair fails to decisively break below the 151.33 trigger, it may alleviate immediate downside pressure, potentially keeping the price range-bound. However, the overall bias remains bearish as long as USD/JPY remains capped under the 153.00 zone.

Res: 151.98; 152.69; 153.00; 153.80
Sup: 151.22; 151.00; 150.18; 150.00