UOB’s Quek Ser Leang and Lee Sue Ann report that USD/JPY rebounded after a sharp drop to 161.26, with intraday gains expected to be capped between 161.60 and 162.45. Over the next 1–3 weeks, the outlook is described as mixed, with trading likely between 160.60 and 163.00. On a 1–3 month view, further gains are possible as long as the pair holds above the 21‑day EMA near 161.00.

Dollar Yen rebound seen limited

"24-HOUR VIEW: USD fell sharply in the early Asian session last Friday. When it was at 162.00, we stated that “further declines seem likely, but it is unclear whether 161.40 will come into view.” USD then fell to 161.26 before rebounding to close at 161.69 (-0.42%). USD continues to rebound today. The price action suggests that the sharp drop from Friday has stabilised. Today, while USD could rebound further, any advance is likely to be contained within a 161.60/162.45 range."

"1-3 WEEKS VIEW: Our most recent narrative was from last Tuesday (07 Jul, spot at 162.10), when we indicated that “the outlook for USD is mixed,” and it could “trade between the two major levels of 160.60 and 163.00.” Last Friday, USD dropped sharply to 161.26 before recovering. The price action provides no fresh clues, and the outlook remains mixed. For the time being, USD could continue to trade between the two major levels of 160.60 and 163.00."

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