The Japanese yen is showing bearish pressure against the US dollar despite trading within an elevated range, according to United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann. USD/JPY settled virtually unchanged at 159.41 after testing a session low of 158.58 before bouncing back to 159.54. The currency pair remains trapped near multi-decade highs for the dollar, reflecting persistent weakness in the Japanese currency.
UOB strategists project the pair will trade between 158.70 and 159.70 during today’s session, suggesting limited downside potential for the yen despite brief intraday dips. The bearish yen outlook comes as traders continue weighing monetary policy divergence between the Bank of Japan’s ultra-loose stance and the Federal Reserve’s higher-for-longer rate strategy. Currency traders and forex brokers should watch for any break above 159.70 as a signal for further yen weakness.
FXnCO Insight
Favor dollar strength against the yen on dips toward the 158.70 support level, with resistance targets near 159.70 offering tactical selling opportunities.
Source: FXStreet