Yen strengthens further after the election, advancing beyond critical chart levels

USDJPY extended its sharp decline for a second consecutive session, retreating further from the February 9 lower high at 157.65, as the Japanese yen rallied following Prime Minister Takaichi’s election victory. The outcome improved expectations for stronger economic growth and reinforced speculation over a more hawkish monetary policy stance in Japan.

Renewed discussions surrounding the possibility of market intervention also added to the yen’s renewed strength.

The pair has fallen around 2% since Monday’s opening, with downside risks increasing after the latest acceleration lower breached several key technical levels.

Selling pressure pushed the pair decisively through the ascending daily Ichimoku cloud, spanning 156.34 to 154.68. Today’s move saw price action emerge below the cloud and weaken the Fibonacci support at 154.26—the 61.8% retracement of the 152.10–157.65 advance—an area reinforced by the 100-day moving average.

Momentum indicators continue to deteriorate, with strengthening negative momentum and most moving averages aligned in a bearish configuration on the daily chart, supporting the negative outlook.

A daily close below the cloud base is required to confirm the bearish signal, while a firm break beneath the 154.26 pivot would further undermine the near-term structure, opening the way toward 153.40 (76.4% Fibonacci) and exposing the key support at 152.10, the higher base from January 27–28.

Res: 154.68; 155.00; 155.53; 155.77
Sup: 154.21; 153.40; 152.86; 152.10