The Japanese Yen continued to weaken against the US Dollar, with the USD/JPY pair closing higher for the fifth consecutive session, ending at 158.83 after a 0.34% gain yesterday [1]. According to UOB analysts Quek Ser Leang and Lee Sue Ann, the momentum for USD/JPY remains positive, although technical indicators are now deeply overbought, suggesting a near-term consolidation between 158.30 and 159.00 is likely [1].
Despite the overbought conditions, UOB analysts see scope for the USD/JPY to test major resistance at 159.60, provided the pair holds above the revised strong support level at 157.60 [1]. This outlook follows the pair's recent break above the 158.40 resistance, which was highlighted as a key level earlier in the week [1].
The analysts caution that while further USD strength is possible, the risk of a pullback will increase if the pair approaches or tests the 159.60 resistance level [1]. No specific market reactions or analyst opinions beyond the technical outlook were provided in the article [1].
CONCLUSION
The USD/JPY pair remains in an uptrend, with analysts highlighting the potential for a test of 159.60 resistance if support at 157.60 holds. However, overbought conditions suggest consolidation or a pullback could occur in the near term. Market participants should monitor these technical levels for potential shifts in momentum.