USD/JPY: Testing highs but momentum still muted – UOB

FXStreet Insights Team FXStreet

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann observe that USD/JPY climbed to 159.37 as the Dollar strengthened. They see scope for a retest of 159.65, with limited follow-through above that level, and expect a broader 157.55–160.50 range. Longer term, a move above 159.45 is possible but unlikely to challenge 162.00.

Dollar-Yen holds near upper band

"24-HOUR VIEW: Subsequent to Monday’s price action, we highlighted yesterday that “momentum indicators are mostly flat,” and we expected USD to “trade between 158.50 and 159.20.” Our view was incorrect, as after dipping to 158.66, USD rose and reached a high of 159.64 in the late NY session. USD pulled back from the high and closed at 159.37 (+0.37%). Despite the relatively sharp rise, there has been no clear increase in upward momentum. However, there is scope for USD to retest the 159.65 level. A continued rise above this level is unlikely. Support is at 159.00, followed by 158.75."

"1-3 WEEKS VIEW: Our update from Monday (20 Apr, spot at 159.10) still stands. As highlighted, after the recent choppy price action, “we are not able to derive much from the volatile price action.” We also indicated that “for the time being, USD could trade between 157.55 and 160.50.”"

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

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FXStreet Insights Team

FXStreet

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