USD/JPY Price Forecast: 158.00 caps upside as the pair consolidates near January 2025 highs

The USD/JPY is currently consolidating below the strong resistance level of 158.00, which marks the highs from January 2025. Recent developments suggest that the US Dollar is under pressure due to reports of a criminal probe involving Federal Reserve Chair Jerome Powell, leading to unsettled market sentiment. This situation has allowed the Japanese Yen to gain ground. The price currently finds itself at a crucial resistance level of 158.00, and as long as there is no clear rebound at this level, the upward movement is likely to remain limited, suggesting a continued consolidation phase. With Japanese economic indicators and yield curve movements being closely monitored, the strength of the Yen's current position raises questions about sustainability. Moreover, should the Dollar's weakness persist, the Yen might attempt further bullish moves, but breaking through 158.00 will necessitate strong buying signals. Hence, traders need to identify a solid entry point amidst the flat price action.