USD/JPY Eyes Double Bottom Near 152.00 After Sharp 700-Pip Decline

USD/JPY is attempting to form a double bottom pattern near the 152.00 level after a sharp 700-pip decline from 159.00, making it one of the most actively traded pairs in recent months. The sell-off was triggered by the latest Japanese election results, in which Sanae Takaichi's LDP party secured a super majority in the Lower House, granting her a strong mandate to influence economic and monetary policy direction. This political development has fueled expectations of a more hawkish stance from Japanese policymakers, strengthening the yen. The pair has seen elevated volatility over the past two years, characterized by two significant 18-big-figure trends. From a technical perspective, the 152.00 level serves as critical support where buyers are attempting to establish a floor. A confirmed double bottom would signal potential upside recovery, with resistance likely emerging near the 155.00–156.00 zone. Traders should monitor Bank of Japan policy signals and upcoming US economic data for directional cues, as a failure to hold 152.00 could open the door to further downside.