Weekly Chart USD/JPY Update: Consolidating at 158.00, scope for break later

Bounce from the 155.22 low at the start of August saw strong corrective gains to reach 159.78 high before giving way to fresh selling pressure.

Losses has since steadied at the 158.00 support but negative daily and weekly studies suggest this giving way to further losses later. Below the 158.00 level will open up room for etension to support at 157.00/156.65 congestion and low of 7 August. A later break here will return focus to downside to target the 156.00 congestion then the 155.22/155.00, 3 August and May lows.

Meanwhile, resistance is lowered to the 159.00 level. Regaining this will ease the downside pressure and open up room for retest of the 159.78 high and sets up scope for stronger bounce to resistance at the 160.00/160.50 figure and congestion area.