USD/JPY slides on Fed rate cut bets and cautious BoJ stance

USD/JPY weakened 0.6% to 149.20 as growing expectations for Federal Reserve rate cuts combined with Bank of Japan's cautious policy signals. Markets are now pricing in a 70% probability of a Fed rate cut by December following weak US employment data, while BoJ Governor Ueda indicated the central bank would maintain its accommodative stance despite reaching 2% inflation. The pair broke below the crucial 150.00 psychological level, triggering technical selling pressure. Japanese officials have expressed comfort with current yen levels, reducing intervention risks that previously supported USD/JPY. Immediate support lies at 148.80 (50-day moving average), while resistance has formed at 150.00-150.20 zone. The shifting monetary policy outlook between the Fed and BoJ suggests further downside potential for USD/JPY, particularly if upcoming US inflation data shows continued cooling, reinforcing rate cut expectations.