USD/JPY holds below 159.50 as soft dollar caps upside

USD/JPY is edging lower in Asian trading on Friday and is holding below the mid-159.00s, though the pair remains close to a nearly two-week high reached the previous day.

Upside is being capped near 159.50, where the 50% Fibonacci retracement level is acting as resistance. A softer U.S. dollar is also limiting the pair's ability to extend higher.

For now, bulls are cautious below that technical hurdle, leaving the short-term bias mildly negative.