USD/JPY Finds Support at 21 and 50-Day Moving Averages After Sharp Decline

USD/JPY Finds Support at 21 and 50-Day Moving Averages After Sharp Decline

The USD/JPY currency pair continued its downward momentum on Wednesday, driven by declining US Treasury yields and waning geopolitical risk in the Middle East. The pair hit a low near 145.62, where it appears to have found technical support at the 21 and 50-day moving averages (DMAs).

Yield Drop and Dovish Fed Curb Dollar Demand

Investor reaction to dovish remarks by the Federal Reserve has weighed on the US Dollar (USD), as expectations for a rate cut gain momentum. Additionally, lower oil prices, triggered by Israel-Iran ceasefire optimism, further supported a decline in US bond yields—dragging the USD/JPY down in the process.

Key Technical Levels in Focus

At present, the 21-DMA and 50-DMA serve as immediate support zones, potentially limiting further downside. A break below could open the door to testing the next psychological support at 145.00. Upside resistance is seen near 146.30–146.50, the previous consolidation range.

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