The Japanese yen continues to trade near historic lows against the US dollar, with USD/JPY closing firmly at 162.42 after rebounding from an intraday low of 161.26, according to United Overseas Bank currency strategists Quek Ser Leang and Lee Sue Ann. The pair traded within a tight range between 161.55 and 162.48 during the session, reflecting persistent yen weakness despite recent intervention speculation from Japanese authorities.
UOB analysts forecast near-term upside potential toward the 162.70 level, though they expect the psychologically significant 163.00 mark to remain out of reach for now. Immediate support sits at 162.20 followed by 162.00, providing a floor for the current trading band.
The yen’s sustained weakness poses challenges for Japanese importers facing higher costs and increases pressure on the Bank of Japan to adjust its dovish monetary policy stance. Currency market participants remain on alert for potential intervention from Tokyo.
FXnCO Insight
Traders should watch the 162.70 resistance level closely while maintaining tight stops below 162.00 as intervention risk remains elevated at these exchange rate extremes.
Source: FXStreet