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United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann reported that USD/JPY has risen to 159.84, confirming earlier expectations of a retest at 159.65. They anticipate the pair will remain within an intraday range of 159.40–160.05, despite slowing upward momentum. The analysis highlights the significance of the 160.05 level as a potential resistance, which could determine the pair's next directional move.
For traders, this range-bound scenario suggests limited volatility in the short term, with key focus on the 160.05 threshold. A breakout above this level could signal renewed bullish momentum, while a failure to hold above 159.40 might trigger a pullback. The pair's behavior here will influence carry trade strategies and hedging decisions, particularly for investors exposed to Yen-based assets.
The implications for global forex markets hinge on whether USD/JPY can sustain above 159.65, which would validate the UOB forecast. Traders should monitor central bank policies, especially the Bank of Japan's stance on Yen intervention, and U.S. Federal Reserve signals. The next critical juncture will be the pair's reaction to the 160.05 level, which could act as a psychological barrier.
