Weekly Chart USD/JPY Update: Consolidating losses, but downside still vulnerable

Rejection from the 164.00 high to break support at the 162.84 high of 1 July gave way to sharp losses through the 2024 year high at 161.95 and the 160.00 figure. 

Follow-through to break channel support from the 2025 year low at the 158.00 level has seen losses towards strong support at the 155.00, May low. Reaction here see prices consolidating the steep drop but bearish momentum suggest this giving way to renewed selling pressure later. Break here will see room for further losses to support at the 154.00 congestion with potential seen for extension to critical support at the 152.10, late-January current year low, and extending to 151.95/151.90, the 2022/2023 year highs.  

Meanwhile, resistance is at the 158.00 previous channel support from the April 2025 year low. Above here will open up room for stronger corrective bounce to retest resistance at 159.45 January high and the 160.00/160.45 July low and congestion area which is expected to cap. Break of the latter, if seen, will fade the downside pressure and return focus to the 162.00/164.00 area.