UOB’s Quek Ser Leang reports that the USD/JPY currency pair experienced an unexpected and sharp decline, reaching a low of 160.62 before rebounding to close at 161.09, marking a 0.90% drop for the US Dollar against the Japanese Yen [1]. This sudden selloff shifted the short-term bias lower for USD/JPY, although oversold conditions suggest there is scope for a rebound within the 160.80–161.90 range intraday [1].
In the 24-hour outlook, UOB notes a slight increase in downward momentum, with the bias for the USD tilted to the downside. However, any further decline is expected to be contained within the 162.20/162.75 range, and a clear break below 162.20 is considered unlikely [1]. The rebound from oversold levels indicates that the USD is unlikely to weaken further in the immediate term, and any advance is likely to be limited to the 160.80/161.90 range [1].
Looking at the one-to-three week horizon, UOB had previously maintained a positive outlook for the USD, targeting 163.00. However, the recent plunge below the strong support level at 161.80 (with a low of 160.62) suggests further downside risk. A move toward 160.00 is possible only if USD/JPY closes below 160.60, with strong resistance now identified at 162.45 [1].
No specific market reactions or analyst opinions beyond UOB’s technical outlook are mentioned in the article. Forward-looking statements emphasize that the likelihood of further downside remains as long as the 162.45 resistance is not breached, and a close below 160.60 would be required to confirm a move toward 160.00 [1].
CONCLUSION
The sharp decline in USD/JPY to 160.62 has shifted the short-term bias lower, though oversold conditions suggest a potential rebound. UOB highlights that further downside is possible if the pair closes below 160.60, with resistance at 162.45 capping any upside. Market participants should watch these key technical levels for further direction.