USD/JPY stabilizes at 149.50 after Friday's NFP-driven plunge

USD/JPY found stability around 149.50 on Monday, recovering slightly from Friday's sharp 1.2% decline triggered by disappointing US Non-Farm Payrolls data showing only 125,000 jobs added versus 185,000 expected. The pair had tumbled to 149.00, its lowest level in three weeks, before finding support from bargain hunters. Japanese officials remained notably quiet about the yen's appreciation, suggesting comfort with current levels around 149-150. Technical indicators show oversold conditions on the hourly charts, supporting a temporary bounce. However, the daily trend remains bearish with resistance at 150.20 (Friday's breakdown level) and support at 148.80 (July low). Market participants are now focusing on Wednesday's US CPI data, which could either validate or challenge current Fed rate cut expectations. A softer inflation reading could push USD/JPY toward the 148.00 handle, while any upside surprise might trigger a relief rally back above 150.00.