USD/JPY rebounds amid persistent dollar weakness, downside risks remain

USD/JPY has staged a technical rebound from recent lows, though underlying dollar weakness continues to pose downside risks for the pair. The rebound comes as traders reassess oversold conditions following the pair's recent decline, with the Dollar Index showing signs of stabilization. However, fundamental headwinds persist for the greenback, including expectations of Federal Reserve policy shifts and concerns over US economic momentum. The Swiss franc remains bid alongside the yen as safe-haven currencies maintain their appeal amid global uncertainty. Technical indicators suggest the current bounce may be limited, with resistance levels capping upside potential. Near-term support for USD/JPY sits around the 148.50 level, while resistance emerges near 150.00. Traders should remain cautious as the broader trend still favors dollar weakness, particularly if upcoming US economic data disappoints market expectations.