UOB analysts Quek Ser Leang and Lee Sue Ann highlight a sharp USD/JPY drop from near 160.00 to around 158.70, with scope for further declines toward 158.00 while a sustained move below that level is not yet anticipated. Over the coming one to three weeks, they see increasing downward momentum but remains unsure whether the pair can break and hold below 158.00, with 159.40 marked as strong resistance.

Japanese Yen gains as Dollar retreats

"The rapid increase in downward momentum suggests USD could continue to decline, potentially reaching 158.00 (minor support at 158.20)."

"Given that the decline is entering oversold territory, a continued drop below 158.00 is unlikely."

"Currently, it is too early to determine whether USD can break and hold below this level."

"On the upside, if USD breaks above the ‘strong resistance’ level, now at 159.40, it would mean that it could trade in a broad range for a time."

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