USD/JPY Extends Bearish Momentum Below 149.00 Support Level

USD/JPY has broken below the psychologically important 149.00 level, declining 0.8% (120 pips) to 148.65 in today's session. The bearish momentum accelerated after failing to hold above the 150.00 resistance, triggering stop-loss orders and technical selling. The move reflects both dollar weakness amid Fed rate cut speculation and renewed yen strength as Bank of Japan officials hint at potential policy normalization. Technical analysis reveals the pair has breached its 50-day moving average at 149.20, opening the path toward the next major support at 147.80. RSI indicators have entered oversold territory at 28, suggesting a potential short-term bounce, though the overall trend remains bearish. Japanese economic data showing improving inflation at 2.3% YoY has bolstered expectations for BoJ action. Traders should watch for any verbal intervention from Japanese officials, as rapid yen appreciation could prompt concerns about export competitiveness.