USDJPY: Key Support Levels Facing Pressure

USDJPY dropped to its lowest level in 8½ months on Wednesday, reaching 140.70, after testing critical support at 141.68 (low from August 5).

The subsequent rebound, driven by oversold conditions on the daily chart, was supported by profit-taking, which lifted the price and set up a potential further decline.

A close below 141.68 is necessary to confirm the continuation of the bearish trend and to target the next key levels: 140.48 (Fibonacci 61.8% of the 127.22/161.95 range), 140.25 (low from December 28), and 140.00 (psychological level). A drop below 140.00 could lead to a deeper decline.

Any upward movements should ideally be capped below the 142.50/143.00 zone to maintain the bearish outlook and offer better levels to re-enter the downtrend.

The falling 10-day moving average (143.98) and the broken Fibonacci 50% level (144.58) are key resistance levels. A breach of these could shift the bearish outlook.

Daily indicators continue to show strong negative momentum, with moving averages in a bearish configuration and the 55-day and 200-day moving averages approaching a Death Cross, reinforcing the bearish signal.

Res: 141.55; 141.76; 142.50; 143.90
Sup: 140.48; 140.25; 140.00; 138.60