USD/JPY Breaks Below 155.00, Eyes on Downside Run

The USD/JPY currency pair has broken below the 155.00 level for the first time since February, causing significant pressure on dip buyers and opening up the door for a further downside run.

This technical breach is particularly notable as it also cracked under key daily resistance near 155.50, according to the daily chart.

From a fundamental perspective, the yen is finding some relief due to shifts in BOJ expectations, which have become more hawkish in recent times. However, traders seem to have already priced this factor into their expectations and do not anticipate any significant upside for the yen from BOJ decisions.

The GPIF, Japan's pension fund, may also be poised to announce a shift in its asset allocation strategy towards domestic assets. A formal announcement is expected later in October, but if it happens, it could provide additional support to the yen.