USDJPY Breaks Below 157.00

Ongoing Yen Recovery Takes USDJPY to 1-Week Lows

Short-term outlook remains bearish as pair breaches key support level

The Japanese Yen continued its strong intraday recovery gains against the US Dollar on Thursday, with USDJPY dropping below the 157.00 level for the first time in a week. The Yen's rally gathered pace as the pair fell to 157.21 on the day, extending its losses from Wednesday's high of 158.50.

The Yen's recovery comes amid a broader market sell-off in the US Dollar, which has been weighed down by concerns over the Federal Reserve's aggressive interest rate hike path and the ongoing global economic slowdown. The Yen, which is often seen as a safe-haven currency, has benefited from this flight to safety, as investors seek shelter from market volatility.

Technically, the break below 157.00 is a significant development for USDJPY. This level has acted as a key support level in recent months, and its breach suggests that the pair could be headed for further losses in the short term. The next key support level to watch is 155.00, which represents the 61.8% Fibonacci retracement of the pair's uptrend from October 2022 to January 2023.