USD/JPY finds support at 140.00 with bullish reversal potential

USD/JPY has established a solid floor at the psychologically important 140.00 level, showing signs of a potential bullish reversal after testing this key support zone. The pair bounced 0.8% from intraday lows to trade at 141.20, with technical indicators suggesting oversold conditions may be exhausted. The RSI has turned upward from 30, while MACD shows early signs of bullish divergence. Japanese authorities' recent verbal interventions have failed to sustain yen strength, as yield differentials continue favoring the dollar. The 10-year US-Japan yield spread remains wide at 340 basis points, providing fundamental support for USD/JPY upside. Immediate resistance lies at 142.50 (50-day MA), followed by 144.00. A sustained break above 142.50 could trigger momentum buying toward 145.00-146.00. However, traders should monitor any shift in BoJ policy stance that could limit upside potential.