UOB strategists Quek Ser Leang and Lee Sue Ann report that the USD/JPY pair remains underpinned following a volatile trading session. The pair spiked to 157.76 and briefly dropped to 157.04 before closing at 157.61, marking a 0.29% increase for the day [1]. The previous day saw the USD rise and close 0.33% higher at 157.16, with expectations that upward momentum could push the pair to 157.65. However, while the USD did reach 157.76, it quickly retreated before rebounding, indicating that the major resistance at 157.95 remains out of reach for now [1].
For the intraday outlook, UOB suggests that the USD/JPY could edge higher, but resistance at 157.95 is likely to hold. Support levels for the day are identified at 157.40 and 157.20 [1]. Over the next 1–3 weeks, any further recovery in USD/JPY is expected to face significant resistance around 158.30, with strong support revised to 156.70 from the previous 156.30 [1].
The strategists note that if the USD breaks below 156.30, it would indicate a shift from recovery to range-trading, but the current view is that the pair will continue to recover, albeit with resistance ahead [1]. No specific market reactions or analyst opinions beyond these technical levels are provided in the article.
CONCLUSION
The USD/JPY pair is showing signs of recovery but faces notable resistance at 158.30, according to UOB strategists. While upward momentum has moderated, the pair is expected to remain supported above 156.70 in the near term. Market participants should watch for a break below 156.30, which could signal a shift to range-trading.