United Overseas Bank’s Quek Ser Leang and Lee Sue Ann report USD/JPY rebounded from 161.26 to trade between 161.55 and 162.48, closing firm at 162.42. They see scope for a test of 162.70 while keeping 163.00 out of view, with support at 162.20/162.00. Over coming weeks, Dollar/Yen is expected to stay in a broad 160.60–163.00 range, with the medium‑term uptrend intact above the 21‑day EMA.

Room to test resistance as uptrend holds

"24-HOUR VIEW: USD fell to a low of 161.26 last Friday and then rebounded. When it was at 161.95 yesterday, we highlighted that USD “could rebound further, but any advance is likely to be contained within a 161.60/162.45 range.” USD subsequently traded between 161.55 and 162.48, closing on a firm note at 162.42 (+0.45%). Although upward momentum has not increased significantly, there is room for USD to test 162.70 today. We do not expect the major resistance at 163.00 to come into view. Support levels are at 162.20 and 162.00."

"1-3 WEEKS VIEW: We have the same view since last Tuesday (07 Jul, spot at 162.10), when we indicated that “the outlook for USD is mixed,” and it could “trade between the two major levels of 160.60 and 163.00.” Our view remains unchanged."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)