USD/JPY Forms Double Bottom Pattern at 148.50 Support Level

USD/JPY has established a double bottom pattern at 148.50, signaling potential reversal after declining from 151.20 highs last week. The pair bounced 0.6% to trade at 149.35 as technical buyers emerged at the key support zone. The dollar index futures showed modest gains of 0.15%, providing additional support for the currency pair. The double bottom formation, confirmed by rising volume and positive momentum indicators, suggests a technical target near 151.00 if the neckline at 150.20 is breached. RSI has turned upward from oversold territory at 32, while the 50-day moving average at 149.80 acts as immediate resistance. Japanese officials remain vigilant about excessive yen weakness, with verbal intervention possible above 151.50. Traders should watch for a daily close above 150.20 to confirm the bullish reversal pattern, with stop-losses recommended below the 148.50 double bottom support.