USD Consolidates Ahead of NFP as USD/JPY Tests 154.50 Support

The US dollar enters consolidation mode as markets await Friday's crucial Non-Farm Payrolls report, with USD/JPY testing key support at 154.50 amid foggy market conditions. The pair has declined 0.4% (60 pips) from yesterday's highs as Japanese officials intensify verbal warnings about excessive yen weakness. AUD/USD remains range-bound near 0.6480, caught between dollar strength and steady commodity prices. The US Dollar Index holds above 106.30, maintaining its bullish structure despite the pre-NFP hesitation. Market consensus expects 185,000 jobs added in November, with any significant deviation likely to trigger volatility across dollar pairs. Technical analysis shows USD/JPY forming a potential double top at 155.20, while AUD/USD faces resistance at 0.6520. Traders are advised to reduce positions ahead of the employment data, as recent NFP releases have caused average moves of 80-100 pips in major pairs.