USD/JPY Falls Sharply, Hitting Lowest Level Since Early January

USD/JPY experienced a significant drop overnight, reaching its lowest point since early January, and continuing its steep decline from the 155.21 high for the fifth consecutive day.

The pair fell by 3.3% during the Asian session on Monday, remaining under intense pressure following disappointing US non-farm payroll (NFP) data that further weakened the dollar’s sentiment.

Last week’s large bearish candle, with USD/JPY down 4.7%—the biggest weekly drop since the second week of November 2022—continues to heavily influence near-term action. This is compounded by strongly bearish daily indicators, including the recent 5/200 and 10/200 DMA death-cross formations, which reinforce a negative near-term outlook.

Key supports at 140.25/00 (December 28 low/psychological level) are now in focus, though strongly oversold conditions on the daily chart may prompt some profit-taking.

Any bounce is expected to be limited and ideally capped below today’s peak at 146.63, providing better levels for re-entering the bearish market for a push towards the 140 zone. A breach of this zone would generate another strong bearish signal.

Res: 144.58; 146.48; 146.68; 148.68
Sup: 141.68; 141.00; 140.25; 140.00