United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann expect USD/JPY to trade intraday between 158.80 and 159.25 after a brief pop to 159.34 failed to strengthen momentum. On a 1–3 week view, the bank retains a positive stance but warns that a break below 158.40 would turn the outlook neutral, while a close above 159.25 could open 159.70. Over 1–3 months, upside beyond 159.45 is seen as limited below 162.00.

Dollar-Yen holds firm near recent highs

"24-HOUR VIEW: Yesterday, we expected USD to “trade between 158.40 and 159.10.” Our view was incorrect, as USD popped to a high of 159.34 and then dropped quickly to end the day little changed at 158.96 (+0.03%). The brief advance did not result in any increase in upward momentum. Today, we expect USD to trade between 158.80 and 159.25"

"1-3 WEEKS VIEW: We turned positive on USD early last week. On Tuesday (19 May, spot at 158.80), we highlighted that “short-term upward momentum is starting to fade, and USD must break and hold above 159.25 before further gains are likely.” Yesterday (21 May, spot at 158.85), we highlighted that “upward momentum continues to slow, and a breach of 158.40 (‘strong support’ level) would shift the outlook for USD from positive to neutral.” While USD subsequently popped above 159.25 (high of 159.34), it pulled back to close at 158.96 (+0.03%). In other words, we continue to hold the same view. Looking ahead, should USD close above 159.25, it could open up the way for a move to 159.70."

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