UOB’s Quek Ser Leang and Lee Sue Ann note USD/JPY held above 160.00 and closed modestly higher around 160.25. Intraday, mild upward momentum points to a move toward 160.50, with major resistance at 160.75 unlikely to be threatened immediately. Over 1–3 weeks, the pair is expected to rise gradually toward 160.75, provided support at 159.60/159.95 holds.

Dollar Yen retains gentle upside bias

"24-HOUR VIEW: USD traded between 159.70 and 160.07 last Thursday. On Friday, we stated that “the price action provides no fresh clues, and USD could trade between 159.65 and 160.15.” During the early NY session, USD dipped to a low of 159.82 and then rose to 160.34. USD closed modestly higher at 160.29, up by 0.17%. The slight increase in upward momentum suggests that USD is likely to edge higher to 160.50. The major resistance at 160.75 is unlikely to come under threat. Support is at 160.05; a breach of 159.95 would suggest that the current mild upward pressure has eased."

"1-3 WEEKS VIEW: We highlighted last Thursday (04 Jun, spot at 159.90) that “upward momentum has largely faded,” and we expected USD “to range-trade, albeit with a firm underlying tone, likely between 159.20 and 160.30.” Last Friday, USD rose above 160.30, printing a high of 160.34. Upward momentum is building, albeit tentatively. From here, USD could rise gradually, and the level to watch is 160.75. To sustain the momentum, USD must hold above 159.60 (‘strong support’ level)"

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