USDJPY is trading lower today, reflecting broad USD weakness, and has fallen to its lowest level since September 2024. In the process, the pair broke below a key swing level at 141.670, which had provided support last week. That break gave sellers the green light to push further toward the next downside target.

The next key zone was defined by a swing area between 140.248 and 140.800, which also contains the 61.8% retracement of the move up from the January 2023 low, coming in at 140.483. Today’s low reached 140.480—right at that retracement level—before bouncing modestly higher.

That bounce suggests buyers are testing the waters near the confluence of technical support. So far, they’ve been rewarded with a minor rebound.

For buyers to regain more control, they would need to push the price back above 141.670 and hold it. A move above that level would shift the short-term bias back toward the upside and give sellers a reason to reassess the failed break.

I outline all the key technical levels and dynamics in the video above.

USDJPY
Source: Forex Live