UOB Predicts Further USD Strength Against JPY with Resistance at 158.40

Analysts at United Overseas Bank (UOB) are maintaining their constructive short-term view on the US Dollar against the Japanese Yen, despite a slight drop in price. Quek Ser Leang and Lee Sue Ann point out that while the USD/JPY pair closed at 157.37, it still has room for further strength. They note that intraday moves are expected to be contained within a range of 157.10-157.90.

The analysts also identify firm resistance at 158.40 and revised their strong support level up to 156.45. In the longer term, they warn that rapid downside momentum could target the January low at 152.08.

UOB's forecast is based on the current market conditions, with no significant increase in upward momentum observed yet. However, they still see a chance for USD strength today, albeit within the same range of 157.10-157.90.