Weekly Chart USD/JPY Update: Choppy around 158.00, room for lower later

Extending choppy trade around the 158.00 level as prices settled back from the 158.75 high. However, bullish gains from the 156.07 October low suggest scope for break higher to retest strong resistance at the 159.00 congestion which is expected to cap.

Choppy trade within the 159.00/157.00 area is expected to give way to renewed selling pressure later where break of the 157.00 level will open up room for retest of the 156.00 October low. Below the latter will return focus to support at the 155.00 May low but potential will be seen for deeper pullback to retest the 152.90 low of September then the 152.10/152.00, January current year low and previous 2022 and 2023 year highs.

Meanwhile, break above the 159.00 resistance, if seen, will open up room for retest of strong resistance at 159.45 January high and see possible extension to the 160.00 figure