The Japanese yen is showing further weakness against the US dollar, with analysts at UOB warning of additional downside ahead. USD/JPY held firmly above the 160.00 level and closed modestly higher near 160.25, according to currency strategists Quek Ser Leang and Lee Sue Ann.
Intraday technical analysis reveals mild upward momentum building in the pair, suggesting a move toward the 160.50 level is likely in the near term. Major resistance sits at 160.75, though strategists believe this threshold won’t face immediate pressure based on current momentum indicators.
The yen’s continued weakness comes despite previous Japanese monetary authorities expressing concern over rapid currency depreciation. Traders should monitor for potential intervention signals as USD/JPY approaches psychologically significant levels. The pair’s persistence above 160.00 represents a critical technical development for currency markets and could trigger fresh volatility in Asian trading sessions.
FXnCO Insight
Position for tactical long USD/JPY exposure toward 160.50, but maintain tight stops given elevated intervention risk as the pair approaches 161.00.
Source: FXStreet