USD/JPY tests the lower boundary of its near-term range ahead of tariff announcement

USD/JPY remains under pressure on Wednesday, extending its decline below the 150 level, which has turned into a solid resistance zone after three failed attempts to break higher.

Fresh weakness is testing the 20DMA (149.06), a key support level where bears were previously rejected over the past two sessions, alongside the nearby 50% retracement of the 146.53/151.20 rally (148.87).

Growing risk aversion ahead of tonight’s tariff announcement continues to boost demand for the safe-haven Japanese yen.

A sharper downside move could be triggered if President Trump proceeds with the full implementation of import tariffs, potentially escalating the trade war and further destabilizing global economic conditions.

A decisive break below 149.06/148.87 would confirm the end of the corrective phase (146.32/151.20) and expose key downside targets at 148.32 and 147.64 (Fibo 61.8% and 76.4% retracements, respectively).

On the upside, strong resistance at 150.00 (psychological level / 10DMA) is expected to cap gains and maintain the bearish outlook, while a firm break above this level would shift the market sentiment.

Res: 150.00; 150.26; 151.00; 151.38
Sup: 149.06; 148.87; 148.32; 148.00