United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann report that the USD/JPY uptrend is losing momentum after the pair failed to extend gains beyond 159.25 and recorded its first daily decline in seven sessions, closing at 158.91, down 0.08% [1]. The strategists note that while there is still potential for USD/JPY to move above 159.45 in the coming months, the short-term outlook would turn neutral if the pair breaks below the 158.40 support level [1].
For the immediate term, UOB expects USD/JPY to trade within a range of 158.40 to 159.10, following recent fluctuations between 158.57 and 159.16 [1]. The analysts emphasize that upward momentum is slowing, and a sustained move above 159.25 is necessary for further gains [1].
The report highlights that the current 'strong support' level is set at 158.40, and a breach of this level would signal a shift from a positive to a neutral outlook for the USD against the Japanese Yen [1]. No specific market reactions or broader implications are discussed in the article [1].
CONCLUSION
UOB strategists indicate that the USD/JPY uptrend is weakening, with key support at 158.40 being closely watched. A break below this level would neutralize the short-term positive bias, while a move above 159.25 is needed for further gains. Market participants should monitor these technical levels for potential shifts in momentum.