USD/JPY breaks below 200-day MA after 1.35% drop, bearish reversal confirmed

USD/JPY has posted a decisive bearish reversal, falling 0.91% on 2 September and extending losses by a further 1.35% on 3 September. The two-day decline is comparable in magnitude to the sharp move seen around the July US-Japan FX intervention episode, underscoring the intensity of the selling pressure. Critically, the pair has now closed below its 200-day moving average, a widely watched trend filter whose breach shifts the medium-term technical bias from bullish to bearish and often attracts systematic and trend-following selling. The speed of the move suggests position liquidation rather than orderly repositioning, with momentum indicators rolling over from elevated levels. The 200-day moving average now converts into overhead resistance, and failed retests of that zone would reinforce the downtrend, while a swift reclaim would neutralise the bearish signal. Support clusters around the 155.00 psychological level. Traders should monitor US yield direction and any Bank of Japan or Ministry of Finance commentary, as verbal or actual intervention risk has historically shaped USD/JPY behaviour at extremes.