UOB Warns of Japanese Yen Downside as USD Strength Continues

According to Quek Ser Leang and Lee Sue Ann from United Overseas Bank (UOB), the Japanese Yen is still facing a potential downside against the US Dollar. The pair closed at 157.37, but they see scope for further USD strength. In their short-term view, intraday moves are expected within 157.10-157.90, with firm resistance at 158.40.

While the USD rose to 157.52 on Monday and is still expected to rise today, there has been no significant increase in upward momentum. The analysts revised their 'strong support' level higher to 156.45, warning that rapid downside momentum could eventually target the January low at 152.08.

UOB's forecast for the USD/JPY pair remains positive, with further strength likely but facing firm resistance at 158.40. To maintain this momentum, the USD must hold above its revised 'strong support' level at 156.45.