USD/JPY dives to 200-SMA after sharp drop

Overview: USD/JPY slid to 158.00 following Wednesday's US Treasury bond intervention but held firmly above its 200-day EMA. This indicates that the bears need stronger selling pressure to worsen the short-term outlook. Still, the rejection at the 20-day EMA and the bearish crossover between the 20- and 50-day EMAs favor continued caution.
Momentum: The RSI and stochastic oscillator remain anchored in bearish territory, while the negative MACD keeps the odds low for an immediate bullish reversal.
Bearish Scenario: An extension below the flattening 200-day SMA near 157.90 could expose the lower boundary of the ascending channel around 157.00, with further downside targeting the 155.00 floor.
Risk: A close above the 159.20 barrier and the 20-day EMA could revive buying appetite.







