USD/JPY falls below 156, crypto market enters depreciation window

The signals of a weakening US dollar are becoming increasingly evident. According to the latest news, the USD/JPY has fallen below the critical support level of 156, hitting a new low since December 30, 2025, with an intraday decline of 1.5%. This seemingly ordinary forex fluctuation could send important signals to the crypto asset market.

Technical Breakthrough in USD Depreciation

The USD/JPY falling below 156 essentially reflects increasing depreciation pressure on the dollar relative to the yen. Although the decline may seem modest, in a low-volatility environment like the forex market, an intraday drop of 1.5% is enough to attract attention.

Significance of the Break Below the Key Support Level

156 is an important recent support level for USD/JPY. Falling below this level means:

• The bearish force on the dollar is strengthening, and bulls are unable to defend
• Market sentiment is shifting from dollar strength to dollar weakness
• It may trigger further selling momentum

Underlying Driving Factors

Although the news brief does not specify the reasons for the breach, USD depreciation is usually related to the following factors:

• US economic data underperforming expectations
• Expectations of the Bank of Japan’s policy adjustments
• Rising global risk appetite
• Increased market expectations of Fed rate cuts

Potential Impact on the Crypto Market

A weakening dollar is often a positive signal for crypto assets, and understanding this logic is important.

Why USD Depreciation Benefits Crypto Assets

The relationship between crypto assets and the dollar is inverse. When the dollar depreciates:

• The cost of purchasing crypto assets with dollars decreases
• Investors seek assets outside of the dollar for safe-haven
• Rising inflation expectations increase the attractiveness of crypto assets as alternative assets
• Global liquidity may flow into risk assets

Current Market Environment

The USD/JPY hitting a near-month low reflects a broader trend of dollar weakness. If this trend continues, it could create a more favorable environment for the crypto market. However, it’s important to note that a single exchange rate data point is not enough to determine the overall dollar trend; broader indicators like the US Dollar Index should also be observed.

Key Points to Watch Moving Forward

• Whether USD/JPY can continue to break downward or rebounds at low levels
• The overall direction of the US Dollar Index
• Whether the crypto market responds positively to dollar depreciation
• The policy moves of the Bank of Japan

Summary

The breach of 156 in USD/JPY marks a technical confirmation of recent dollar weakness. This is generally seen as a positive signal for crypto assets, but the market’s ultimate response depends on whether dollar depreciation sustains. In the short term, this signal provides a positive reference point for market participants, but the real impact will depend on other economic data and policy signals. The key is to observe whether dollar depreciation becomes a sustained trend rather than a short-term fluctuation.