The USDJPY dropped to its lowest level since October 2024, breaking below this week’s previous low of 148.102 and reaching a key swing area between 147.21 and 147.338, with a session low of 147.30. Buyers stepped in at this support zone, driving a rebound.

The recovery gained momentum after U.S. Commerce Secretary Lutnick’s comments boosted economic sentiment, leading to a rise in Treasury yields. The 10-year yield is now up seven basis points at 4.337%, supporting the USDJPY’s bounce.

If the upside continues, the next resistance targets are the 148.56–148.72 swing area, followed by the 50% retracement of the September-to-January rally at 149.22.

This article was written by Greg Michalowski at www.forexlive.com.