USDJPY pulled back from recent highs as PCE data disappoints, key support at 155.88 holds. Watch for upside targets near 157.92 and 158.42.
The USD/JPY moved lower on Friday after reaching its highest level since July 18, 2024. The pair hit a high of 157.92, entering a key swing area on the daily chart between 157.665 and 158.419, but momentum failed to hold. The release of lower-than-expected PCE data on Friday contributed to the decline.
As the price approached the December 20 swing high at 155.88, the decline slowed, with the session low reaching 155.94. Holding above this level emphasizes its importance as a key support going into the new trading week. Remaining above 155.88 would favor buyers, while a break below could trigger additional selling pressure.