The Japanese Yen extended its downtrend against the US Dollar, with USD/JPY closing at 159.51, marking its second consecutive daily gain according to UOB analysts Quek Ser Leang and Lee Sue Ann [1]. The pair rose modestly by 0.14% and is expected to potentially test levels above 159.70 in the near term, though the next resistance at 159.95 is considered unlikely to be reached imminently due to still-lacklustre upward momentum [1].
UOB maintains a positive bias on USD/JPY over the 1–3 week horizon, having held this view since mid-month. The analysts note that while upward momentum has slowed, the pair has remained above the key support level of 158.40, which would shift the outlook from positive to neutral if breached [1]. The current 'strong support' is now identified at 159.00, with 159.35 as the immediate support and 159.20 as the level where upward pressure would be considered to have eased [1].
Market implications suggest a continued positive outlook for the US Dollar against the Yen, though analysts express caution regarding the ability of USD/JPY to reach the 159.95 resistance in the short term due to subdued momentum [1]. No specific market reactions or analyst opinions beyond the technical outlook are provided in the source.
CONCLUSION
USD/JPY remains in an uptrend, with analysts maintaining a positive bias while noting that momentum has slowed. Key resistance at 159.95 is in focus, but may not be reached soon, while support levels at 159.35 and 159.00 are being closely watched.