USD/JPY slips back into full bearish mode as renewed risk aversion fuels demand for safe-haven assets

Bears have regained control, completely erasing the recent rebound from the multi-month low at 144.55. Strong bearish signals are forming on the daily chart, including a double rejection of recovery attempts and a bull-trap above the converged daily Tenkan and Kijun-sen lines.

The outlook has worsened following the sharp escalation in U.S. tariffs on all Chinese imports, with markets bracing for potential retaliation from China. This has reignited risk aversion, boosting demand for the safe-haven yen.

Sellers have pressured prices back toward the recent low at 144.55 and are now targeting 144.13 (76.4% Fibonacci retracement of the 139.57–158.87 rally). A break below this level would open the door toward 141.64 (the higher low from Sep 30), with key supports at 140.00 and 139.57 (psychological and 2024 low) in focus.

On the upside, former support at 146.53 (Mar 11 low) and the broken 61.8% Fibo level at 146.95 have turned into resistance zones that are expected to cap any recovery attempts and maintain bearish momentum.

Res: 146.60; 147.48; 148.19; 148.90
Sup: 145.18; 144.13; 143.65; 142.97