UOB’s Quek Ser Leang and Lee Sue Ann report USD/JPY closed at 159.51, its second straight daily gain, and see scope for further upside. Intraday, they expect a test above 159.70, though 159.95 is unlikely to be reached yet. Over 1–3 weeks, they keep a positive bias while questioning whether 159.95 and higher levels can be achieved given still-lacklustre momentum.

Dollar-Yen remains biased higher

"24-HOUR VIEW: Yesterday, USD edged up for the second straight day, closing modestly higher by 0.14% at 159.51. Although upward momentum has not increased significantly, USD could continue to edge higher and potentially break above 159.70. The next resistance at 159.95 is unlikely to come into view. Support is at 159.35; a breach of 159.20 would indicate that the current upward pressure has eased"

"1-3 WEEKS VIEW: We have held a positive USD view since the middle of the month (see annotations in the chart below). In our most recent narrative from last Thursday (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.” However, USD held above 158.40 as it edged higher over the past couple of days. The renewed upward momentum suggests the outlook remains positive, and USD could rise further. That said, it is left to be seen whether USD can reach 159.95. On the downside, the ‘strong support’ level is now at 159.00."

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