Japanese Yen: Pressure persists toward 159.60 against US Dollar - UOB
UOB’s Quek Ser Leang and Lee Sue Ann note USD/JPY has risen for five straight sessions to 158.83, with momentum still positive but indicators deeply overbought.
UOB analysts Quek Ser Leang and Lee Sue Ann report that the USD/JPY currency pair has been on a five-session upward trend, reaching 158.83. Despite this momentum, they believe the market is overbought, and anticipate a short-term consolidation between 158.30 and 159.00. However, they caution that a break above 159.60 is possible if the pair remains above the revised strong support level at 157.60.
Over the past 24 hours, the USD rose 0.34% to 158.83, and momentum indicators show negative divergence. USD is more likely to consolidate between 158.30 and 159.00 in the near term. Looking at a 1-3 week outlook, positive USD sentiment from earlier this week is still valid, yet overbought conditions suggest that any further rise will likely face strong resistance at 158.40.
To maintain momentum, the USD needs to stay above the "strong support" level at 156.20. Yesterday, the USD broke above 158.40 and climbed to 159.03, but conditions are still extremely overbought. The "strong support" level currently sits at 157.60.
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