USDJPY – Bears likely to pause near key support zone at 140.00/139.57

USDJPY saw a slight uptick on Tuesday after bears broke the psychological 140 support level, reaching a new multi-month low at 139.88, and came close to testing the key mid-term support at 139.57, the 2024 low from September 16.

Partial profit-taking at this level seemed like a logical move, offering a breather for the larger bearish trend to consolidate and prepare for a final push toward the 139.57 pivot.

Oversold daily indicators support this scenario, although any rebound is expected to be limited, as the overall technical outlook remains bearish. The current environment continues to drive risk aversion, which is likely to further weaken the US dollar and support the safe-haven yen.

The bounce so far has been mild, and stronger rallies are expected to be capped below the falling daily Tenkan-sen at 143.84, keeping the bearish trend intact.

A clear break below the 140.00 and 139.57 levels would signal the continuation of the downtrend that began in January 2025 (from the 158.87 peak) and open up targets at 137.23 (July 2023 low) and 135.41 (Fibonacci 76.4% of 127.22/161.95) in further extension.

Res: 141.17; 142.12; 142.91; 143.84
Sup: 140.00; 139.57; 137.23; 135.41