United Overseas Bank currency strategists Quek Ser Leang and Lee Sue Ann are forecasting continued weakness in the Japanese yen against the US dollar, with USD/JPY consolidating near multi-month highs. The currency pair is expected to trade within a tight intraday range of 161.40 to 161.90, following Tuesday’s session that saw fluctuations between 161.46 and 161.83.
The analysis suggests the yen remains under pressure despite trading near levels that previously triggered intervention from Japanese authorities. The narrow trading band indicates market participants are testing resistance levels while remaining cautious about potential government action to support the weakening currency.
This development affects forex traders, Japanese exporters and importers, and multinational corporations with yen exposure. The sustained weakness could pressure the Bank of Japan to reconsider its monetary policy stance or prompt direct market intervention from the Ministry of Finance.
FXnCO Insight
Traders should monitor 161.90 as a critical resistance level, with breaks above potentially accelerating yen weakness and increasing intervention risk from Tokyo authorities.
Source: FXStreet