United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann continue to hold a constructive short-term outlook for the USD/JPY currency pair after it closed at 157.37, marginally higher by 0.01% [1]. The analysts note that while the US Dollar rose to a high of 157.77 before declining sharply to 156.80 and rebounding, there has been no significant increase in upward momentum. They expect any further advance to remain within the 157.10–157.90 range in the near term [1].
For the 1-3 week horizon, UOB maintains its positive stance on the US Dollar, but highlights that overbought conditions could limit gains, with firm resistance identified at 158.40. The 'strong support' level has been revised higher to 156.45 from 156.20, indicating a tightening range for the pair [1]. Should downside momentum accelerate, the analysts warn that the January low at 152.08 could become a target [1].
Overall, the bias remains bullish for USD/JPY as long as it stays above the revised support level, but the upside is seen as limited unless there is a clear increase in momentum. The market is closely watching the 158.40 resistance and 156.45 support levels for potential breakout or breakdown signals [1].
CONCLUSION
UOB analysts maintain a bullish outlook on USD/JPY, with resistance at 158.40 and support at 156.45. Overbought conditions may cap further gains, but the pair remains supported in the short term. A break below support could shift focus to the January low at 152.08.