According to UOB analysts Quek Ser Leang and Lee Sue Ann, the Japanese Yen continues to show vulnerability against the US Dollar, with the USD/JPY pair consolidating near 159.25 following a sharp rise on Monday [1]. The analysts note that while momentum for the US Dollar remains strong, the pair is experiencing deeply overbought conditions, which are expected to limit any upside beyond the 159.60 level in the near term [1]. For intraday trading, the anticipated range is between 158.95 and 159.60, with the analysts not expecting a clear break above 159.60 at this time [1].
Looking at the medium-term outlook, UOB maintains a bias tilted to the upside for USD/JPY, projecting that any advances will likely occur within a broader range of 157.00 to 160.20, provided the pair holds above the 21-day EMA [1]. The analysts emphasize that the current price action does not provide fresh clues, and the market is expected to remain within the stated range in the coming sessions [1].
No specific market reactions or forward-looking statements from other analysts are mentioned in the article. The focus remains on the technical outlook and the defined trading ranges for the USD/JPY pair [1].
CONCLUSION
UOB analysts see the Japanese Yen remaining under pressure against the US Dollar, with USD/JPY expected to trade within a defined range due to overbought conditions. The medium-term bias remains tilted to the upside, but gains are likely to be capped unless the pair breaks above the current resistance. Market participants are advised to watch the 157.00–160.20 range for potential moves.