Weekly Chart USD/JPY Update: Extend September corrective gains

Consolidation around the 158.00 level has given way to retest of the late-September high at the 159.00 level. Break here will see room to extend bullish gains from the 152.90 September low and see room to strong resistance at the 160.00/160.50 area which is expected to cap.

Gains are seen corrective of the July/September losses and expected to give way to fresh selling pressure later. Meanwhile, support is at the 157.00 level and break here will open up room for retest of support at the 156.50/156.00 congestion and the 155.00 support. Break of the latter will return focus to the 152.90 September low and see potential for break to further retrace the 2025/2026 rally. 

Lower will see scope for retest of the 152.10/152.00, January current year low and the 2024 and 2023 year highs as well as 50% Fibonacci retracement.