USD/JPY breaks 155.00 support as yen rebounds from two-month lows

USD/JPY has declined sharply below the 155.00 psychological level, dropping 0.8% (125 pips) in recent trading as the Japanese yen stages a recovery after two months of sustained weakness. The pair peaked near 156.50 earlier this week, marking potential 2025 highs before reversing course. The yen's rebound comes amid growing speculation of Bank of Japan intervention concerns and profit-taking activities by leveraged traders. Technical indicators suggest the pair has formed a double top pattern around the 156.50 region, with immediate support now at 154.50 (50-day moving average). A sustained break below 154.00 could accelerate selling pressure toward 152.50. Market participants are closely monitoring Japanese officials' verbal interventions and any signs of actual currency market operations. The reversal also coincides with a broader pause in dollar strength as traders reassess Federal Reserve rate expectations for 2025.