The USDJPY has edged to a new session low of 141.96, slipping just below the earlier low of 142.00. On the 4-hour chart, the pair has now moved into a key swing area between 141.64 and 142.11, a zone that dates back to August 2024. While price action dipped below this area in September 2024 and again earlier this month, support has generally held. This month’s low came in at 139.89, just above the 2024 low of 139.57.
Zooming in on the hourly chart, the most recent rebound from the monthly low stalled at 144.02, falling short of the 38.2% retracement of the decline from the March 28 high at 151.20 (which sits at 144.20). That failure capped the bullish momentum and paved the way for renewed downside pressure.
Yesterday’s decline pushed the pair below both the 100- and 200-hour moving averages and briefly into the 141.64–142.11 support area. However, downside momentum faded, and price bounced back above the 200-hour MA. Still, in recent hours, the pair has resumed its move lower as U.S. yields decline, adding pressure to the dollar.
The key question now is whether sellers can sustain momentum and force a break below the lower boundary of the support zone at 141.64. A firm break would open the door for a retest of the monthly low near 139.89, and potentially the 2024 low at 139.57.
This article was written by Greg Michalowski at www.forexlive.com.
