Weekly Chart USD/JPY Update: Limited above 159.00

Turned up from the 158.00 support to regain the 159.00 level has seen extension to approach resistance at the 159.78 high of last week.

However, the latter is expected to cap and consolidation here is expected to give way to fresh selling pressure later to retest the 158.00 support. Below the latter will return focus to the downside and see room for pullback to support at 157.00/156.65, congestion and 7 August low. Break of this area will see room back to the 156.00 congestion but potential will be for extension to retest the critical 155.22/155.00, 3 August and May lows.

Meanwhile, break above the 159.78 high of 18 August, if seen, will set up scope for stronger bounce to retrace the sharp July/August losses. Clearance will open up room to strong resistance at the 160.00 figure and 160.50 congestion area which are expected to cap.