USD/JPY Consolidates Ahead of the weekend

The USD/JPY pair rises up 0.06%, but fails to break above 158.00. Key supports at 157.00, 156.00, and bottom of the Kumo at 155.50/60; further support at 155.37 and 155.00. Potential resistance at 157.50 and July 16 peak at 158.85 if buyers push the pair higher.

The USD/JPY edged up during the North American session, gaining a decent 0.06% as traders failed to push the exchange rate above 158.00. At the time of writing, the major consolidates in the middle of a 90-pip range and trades at 157.44.

If USD/JPY drops below 157.00, that will exert downward pressure on the pair and push prices toward 156.00, ahead of piercing the bottom of the Kumo at 155.50/60. Once those two levels are surpassed, the next demand zone would be the July 18 low of 155.37 ahead of 155.00. A further downside is below that level, exposing the May 16 swing low of 153.61, followed by the May 2 pivot low at 151.87, ahead of testing the 151.00 mark.

Conversely, if buyers stepped in and pushed the USD/JPY above 157.50, look for a re-test of the July 16 peak at 158.85.