Analysts see potential for the pair to test 158.70 but note strong support at 158.40 amid slowing bearish pressure.
The Japanese yen regained ground against the US dollar after USD/JPY closed at 159.19, pulling back sharply in recent sessions. Analysts highlight 158.70 as the next key level to watch, with a sustained drop below that potentially targeting 158.40 as strong support.
The pair’s recent decline follows a period of heightened volatility, with the yen under pressure from divergent monetary policy expectations. While the bearish trend persists, momentum has slowed, reducing immediate downside risks.
No immediate market reaction was specified, but traders are monitoring support levels for signs of stabilization or further weakness.