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United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann have revised their outlook for the USD/JPY pair, anticipating a consolidation range between 158.80 and 159.25 following a failed attempt to break above 159.34. The pair briefly reached 159.34 earlier but failed to sustain momentum, indicating potential resistance at this level. The analysts suggest that the negative bias against the Japanese Yen is weakening, which could lead to a reversal in the near term.
For forex traders, this analysis highlights the importance of monitoring key support and resistance levels in USD/JPY. A failure to break above 159.34 may trigger a pullback toward 158.80, offering opportunities for range-bound trading strategies. The pair’s volatility remains elevated due to mixed economic signals from the US and Japan, including divergent monetary policy trajectories.
The implications for global markets are significant, as USD/JPY is one of the most liquid forex pairs. A reversal could impact carry trade dynamics, with investors reassessing risk appetite. Traders should watch for follow-through volume and any policy shifts from the Federal Reserve or Bank of Japan, which could alter the pair’s direction.
