USD/JPY consolidates near 158.55 ahead of potential further gains
The pair trades sideways on Friday after a strong weekly recovery from multi-month lows, with the 38.2% Fibonacci level at 158.55 acting as near-term resistance.
USD/JPY extended its range-bound price action during the Asian session on Friday, pausing the robust rebound seen earlier this week. The pair had bounced sharply from its lowest level since May, which was triggered by a joint US-Japan policy statement.
Prices are currently consolidating around the 158.55 area, which coincides with the 38.2% Fibonacci retracement of the recent decline. This level is acting as a near-term hurdle for buyers.
The consolidation pattern suggests a potential continuation of the recovery. A sustained break above the 38.2% Fibo. could open the door for the next leg higher, reclaiming further ground lost during the earlier sell-off.
Source: FXStreet Forex News