The Japanese yen weakened further against the US dollar on Monday, with USD/JPY climbing to 159.76 before settling at 159.65, according to UOB currency strategists Quek Ser Leang and Lee Sue Ann. The pair is showing strengthened upward momentum, signaling continued pressure on the Japanese currency as the dollar maintains its dominant position.
UOB analysts anticipate additional intraday gains for the dollar-yen pair but remain skeptical about a decisive breach above the 159.95 threshold in the near term. Key technical support levels are identified at 159.55 and 159.40, which could limit downside moves if the dollar retreats. The analysis suggests traders should watch these levels closely as the yen hovers near psychologically significant territory that previously triggered Japanese government intervention concerns.
The persistent yen weakness reflects ongoing divergence between US and Japanese monetary policies, with the Bank of Japan maintaining ultra-loose settings while the Federal Reserve holds rates elevated.
FXnCO Insight
Traders should watch for potential intervention signals near 160.00, with tight stops recommended given historical volatility around this politically sensitive level.
Source: FXStreet