United Overseas Bank’s Quek Ser Leang and Lee Sue Ann keep a constructive view on USD/JPY, noting the pair has held above strong support at 161.10 while trading quietly around 161.78. Intraday, they expect a tight 161.45–161.95 range, but on a 1–3 week horizon still looks for a test of the 2024 high at 162.00, with longer-term scope to probe the top of a rising wedge near 161.15.

Dollar-Yen holds firm near cycle highs

"24-HOUR VIEW: Yesterday, we indicated that USD “could trade between 161.40 and 161.90.” USD then traded within a range of 161.54/161.94, closing marginally higher by 0.01% at 161.78. We are not able to derive much from the price action. Today, USD could trade between 161.45 and 161.95."

"1-3 WEEKS VIEW: We have held a positive USD view since last Thursday (see annotations in the chart below). In our most recent narrative from Friday (19 Jun, spot at 161.25), we indicated that USD “could rise to the 2024 high of 162.00.” While USD has not been able to make any significant headway on the upside, we will continue to hold this view as long as 161.10 (no change in ‘strong support’ level) is not breached."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)