Japanese yen weakened further against the US dollar with currency strategists at United Overseas Bank warning the pair could test 160.75 in today’s trading session. UOB analysts Quek Ser Leang and Lee Sue Ann maintain a constructive outlook on USD/JPY, citing mild but persistent upward momentum that continues to pressure the Japanese currency. The bank’s technical view caps immediate resistance at 161.00, suggesting limited room beyond that threshold for now.
The yen’s vulnerability comes as markets watch for potential intervention signals from Japanese authorities, who have previously stepped in when the currency approached these levels. Traders holding long dollar positions against the yen face heightened intervention risk, while those short may find limited near-term downside. The 160.75 level represents a critical technical marker that could trigger fresh volatility in Asian FX markets and impact carry trade positioning across regional currency pairs.
FXnCO Insight
Watch for sharp reversals near 160.75-161.00 as this zone historically attracts Japanese official intervention, creating both risk and opportunity for nimble traders.
Source: FXStreet