USD/JPY eased modestly on Wednesday, trading between 156.89 and 157.50 as broad dollar weakness and U.S. equity gains kept the pair below key resistance levels. The upbeat ISM manufacturing PMI and hawkish Fed rhetoric from Richmond’s Thomas Barkin provided limited support for the dollar, as speculative flows remained light ahead of next week’s payrolls report. Despite recent dip buying below 157, which produced a bullish hammer on hourly charts, the pair has struggled to gain momentum amid capped volatility.

Technical analysis highlights key levels for USD/JPY. Resistance remains firm at the 157.80-158.09 range, with a break above the December high at 158.09 potentially paving the way toward the July 16 high of 158.85. On the downside, immediate support lies at 156.94 (9-day exponential moving average), followed by the weekly Ichimoku cloud top at 155.62. A sustained move below 155.62 would undermine bullish sentiment, signaling potential for further downside.

Upcoming events will shape USD/JPY’s trajectory. Focus is on next week’s U.S. jobs data, with risk reversals suggesting diminishing demand for yen calls. Geopolitical developments, such as Nippon Steel’s legal challenge against U.S. restrictions, may also influence longer-term investment flows and hedging activity. Until a breakout above 158.09 or below 155.62 occurs, USD/JPY is likely to remain range-bound, with traders monitoring key technical and macroeconomic signals.