USD/JPY stalls ahead of 158 as Nikkei trades in the red

The USD/JPY rebounded from a later afternoon slump on Friday, that saw the dollar hit a session low at 157.35 not long after the 4pm London Fix. However, that rebound stopped short of reclaiming 158 handle, topping out at 157.94, before later closing at 157.87. Overnight the USD/JPY has held a relatively tight range by recent standards and 157.50-158 certainly covers that for now. The actual range so far is 157.64 to 157.99, so as you can see, the dollar appears to have once more run into some selling interest ahead of that 158 handle. The failure to vault that level owes much to the price action in the Nikkei 225 so far today, as that has been falling back and hence keeping the USD/JPY capped on the topside. In fact, the dollar has actually done quite well today given that dynamic. There will surely be more to add later on. Meantime, the USD/JPY is currently trading at 157.85