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USD/JPY consolidates near 158 as traders await US Nonfarm Payrolls

FXStreet says USD/JPY is stalling near the top of its weekly range around the mid-158.00s, after a joint US-Japan intervention helped drive a rebound from a May low.

Reported · Written up by our desk · Major Pairs

USD/JPY is consolidating near the top of its weekly trading range after extending a recovery that began from the pair’s lowest level since May, according to FXStreet. Spot prices are around the mid-158.00s, following the aftermath of a joint US-Japan intervention.

Traders are holding back for fresh direction ahead of the US Nonfarm Payrolls report, with expectations for at least one further US interest rate hike by the Federal Reserve supporting the US dollar. FXStreet also points to persistent geopolitical uncertainty and renewed inflation fears as additional tailwinds for USD/JPY.

On the yen side, FXStreet cites Japan’s worsening fiscal condition and weaker consumer demand, including Japan’s household spending falling for a seventh straight month. Those factors are seen as reducing the case for a Bank of Japan rate hike in September.

Technically, FXStreet highlights a cap around the 38.2% Fibonacci retracement level of a slide from a four-decade high, with MACD in positive territory but RSI near 50 indicating a neutral, consolidative backdrop. The analysis flags resistance near 158.55, then 159.61 and 160.66, while initial support sits around 157.26 before a structural floor near 155.17.

Latest closeUSD/JPY 158.52 ▲0.6%

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