Japanese Yen: Strength stabilising against US Dollar – UOB

UOB’s Quek Ser Leang and Lee Sue Ann note USD/JPY weakness is stabilising around 153.45 after a drop to 152.92 and recovery to 153.54. They now expect consolidation between 153.00 and 154.30 intraday. However, their 1–3 week view remains negative, with the year‑to‑date low at 152.08 as the next key support, while strong resistance is seen at 155.20.

Dollar Yen still biased lower near 152.08

"24-HOUR VIEW: On Tuesday, USD dropped to 152.87 and then rebounded strongly to close at 153.96. Yesterday, we highlighted the following: “While conditions are deeply oversold, the weakness still has not quite stabilised. Today, USD could test 152.60 before a more sustained recovery can be expected. The major support at 152.08 is still unlikely to come into view. Resistance is at 154.20; a break above 154.50 would indicate that the weakness is stabilising.” Our view did not materialise as USD dropped to 152.92 and then recovered to close at 153.54 (-0.27%). The weakness in USD appears to be stabilising, and instead of continuing to decline, USD is more likely to consolidate between 153.00 and 154.30 today."

"1-3 WEEKS VIEW: We have been holding a negative USD stance since late last week. In our most recent narrative from two days ago (08 Sep, spot at 153.95), we highlighted that “the price action suggests USD is likely to continue to weaken, and the next support level to watch is the year-to-date low of 152.08.” Although downward momentum has slowed somewhat, as long as 155.20 (‘strong resistance’ level was at 155.50 yesterday) is not breached, there is still a chance for USD to move toward 152.08."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)