The USD/JPY currency pair is currently showing a downward bias. The recent drop from the high of 148.64 is ongoing, with the pair aiming to retest the support level at 139.87.
On the upside, if the price moves above the minor resistance at 144.31, the short-term bearish bias will ease, leading to a period of sideways trading before any further decline.
Looking at the bigger picture, the price movement since the 2021 low of 102.58 is seen as a corrective rise, with the recent fall from 158.86 representing the third leg down.
A strong support zone lies near the 38.2% Fibonacci retracement level at 139.26, which could trigger a rebound. However, if the price breaks below 139.26 and holds, it may signal a deeper medium-term decline toward the 61.8% retracement level at 125.25.
Traders should watch these key levels closely, as breaking below support could open the door to further losses, while holding above may offer a chance for recovery.
