UOB’s Quek Ser Leang and Lee Sue Ann notes USD/JPY climbed to 159.76 on Monday, closing at 159.65 with firmer upward momentum. Intraday, they see room for further gains but doubt a clear break above 159.95, with support at 159.55 and 159.40. On a 1–3 week horizon, the stance remains positive, targeting 160.25 once 159.95 is broken and held, while strong support has shifted up to 159.15.

Uptrend intact with key resistance nearby

"24-HOUR VIEW: USD rose and gained 0.24% yesterday, closing at 159.65. Upward momentum has increased, but not significantly. While USD could rise further today, it does not appear to have sufficient momentum to break above 159.95. Support is at 159.55; a breach of 159.40 would indicate that the current mild upward pressure has faded."

"1-3 WEEKS VIEW: We have held a positive USD stance since the middle of last month. In our most recent narrative from last Thursday (28 May, spot at 159.50), we highlighted that the recent “renewed upward momentum suggests the outlook remains positive, and USD could rise further.” We also highlighted that “it is left to be seen whether USD can reach 159.95.” We added, “if USD breaks the ‘strong support’ at 159.00, it would suggest that USD has likely entered a range-trading phase.” USD held above 159.00, and yesterday, it rose to a high of 159.76. While USD remains positive, it must break and hold above 159.95 before a move to 160.25 can be expected. On the downside, the ‘strong support’ level is now at 159.15 instead of 159.00."

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