Japanese Yen: Losses hinge on 159.25 break – UOB
United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann keep a mildly constructive stance on USD/JPY, expecting consolidation between 158.75 and 159.25 in the near term. They note fading short-term momentum but still see potential for further upside if the pair can break and hold above 159.25, which would open the way toward 159.75 over the coming days and weeks.
Dollar-Yen needs clear break higher
"24-HOUR VIEW: We expected USD to “trade in a range between 158.50 and 159.10” yesterday. However, USD edged up to a high of 159.25 before settling at 159.07 (+0.13%). Upward momentum appears to be stalling, and we continue to expect USD to trade in a range today, most likely between 158.75 and 159.25."
"1-3 WEEKS VIEW: After holding a positive USD view since early last week, we highlighted the following yesterday (19 May, spot at 158.80): “Short-term upward momentum is starting to fade, but as long as 157.90 (‘strong support’ level) is not breached, there remains a chance for USD to rise further. That said, given the slowing short-term momentum, USD must break and hold above 159.25 before further gains are likely.” Our view remains unchanged, but the ‘strong support’ is now at 158.40. Looking ahead, a break above 159.25 would indicate that USD could continue to edge higher toward 159.75."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
