USD/JPY is currently expected to trade in a range from the upper ¥158s to just below ¥160, with attention focused on whether a move toward the upside will test a break above ¥160.
USD/JPY fell to just below ¥158 on the 19th, but recovered to the ¥159s on the 20th, and the market has recently been focused on the formation of a range. If a long bias takes hold, a move to break above the key ¥160.00 level is expected. Potential upside targets include ¥160.00, ¥160.50, ¥161.00 and the ¥161.64 upper bound of the Ichimoku cloud.
As an alternative scenario, if selling leads the market, attention will focus on around ¥158.00. A break below that level would bring key levels such as around ¥157.30 and ¥157.00 into focus. If ¥157.00 breaks, a move toward the low around ¥156.68 and ¥156.00 is expected.
The current outlook is centered on a likely range-bound market around ¥158–¥160. If the market moves higher, the ¥160 level will be the key focus, while a move lower would put the level around ¥158 at the center of attention.