Analysts see limited downside for the pair below 158.40, with resistance eyed at 159.45 and a medium-term bullish outlook maintained.
The US dollar retreated sharply against the Japanese yen after closing at 159.19, though downward momentum remains limited. Analysts note support at 158.70, with a sustained drop below 158.40 considered unlikely.
Earlier, USD/JPY traded within a narrower range of 158.87 to 159.23, closing at 159.19 on Friday. The medium-term outlook remains positive, with potential for a rise above 159.45, though the 2024 high of 162.00 is not seen as immediately at risk.
Resistance levels are identified at 159.05 and 159.25, while a breach of 158.40 would shift the outlook to neutral.