Dollar gains as oil climbs and investors focus on the Fed

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann report that the USD/JPY exchange rate has found a solid footing in early Asian trade, with upward momentum continuing to develop. Although the immediate outlook remains bullish, they caution that the currency pair does not seem to have enough momentum to break through the significant resistance level of 158.70.

For the next one to three weeks, UOB anticipates USD/JPY to stay within the range of 156.35 to 158.70. Throughout Monday, the USD fluctuated between 157.41 and 158.29 and closed practically unchanged at 157.90, up by 0.04%. Yesterday, it was suggested that the price action doesn't provide clear directional cues, and the US dollar was expected to fluctuate between 157.55 and 158.45.

The USD then traded within a range of 157.75 to 158.24 and closed at 158.10, up by 0.13%, but showed a firm tone in the early Asian session. For the upside bias to persist, the USD must stay above 157.90, with minor support at 158.10.