USD/JPY targets lower levels as yen strength builds momentum

USD/JPY declined 0.5% to 148.20 as the Japanese yen strengthened across the board amid shifting risk sentiment and technical breakdown. The pair broke below key support at 148.50, triggering accelerated selling pressure from algorithmic traders. Japan's recent economic data showed manufacturing activity expanding for the third consecutive month, supporting the Bank of Japan's gradual policy normalization stance. Meanwhile, US dollar weakness persists as markets price in higher probability of Federal Reserve rate cuts in upcoming meetings. Technical indicators point to further downside, with the next major support level at 147.80, coinciding with the 100-day moving average. Resistance now stands at the former support of 148.50. The bearish momentum suggests potential continuation toward 147.00 if current support fails, particularly if risk-off sentiment intensifies or Japanese authorities signal comfort with yen appreciation.