Weekly Chart USD/JPY Update: Extend corrective gains

Consolidation around the 158.00 level has given way to break higher to extend strong bounce from the 155.22 low to retest the January high at 159.45.

Bullish gains from the 155.22 low suggest scope for break to open up room for strong recovery to retrace the sharp losses from 164.00 high. Higher will see room to the 160.00 level and strong resistance at the 160.50 congestion which is expected to cap. Break here, if seen, will turn focus to the 161.95, July 2024 year high.

Gains from the 155.22 low are seen corrective and expected to give way to fresh selling pressure later. Meanwhile, support is raised to the 158.00/157.00 congestion area. Would take break here to return focus to the downside for retest of the 155.22/155.00, 3 August and May lows. Below 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 then 151.95/151.90, the 2022/2023 year highs.