Forex
USD/JPY Consolidation Ahead: UOB Sees Limited Upside Beyond 159.60
The Japanese Yen (USD/JPY) has been consolidating near 159.25 following Monday's sharp rise, according to UOB analysts Quek Ser Leang and Lee Sue Ann.
While momentum is strong, the pair remains vulnerable due to deeply overbought conditions that limit its upside beyond 159.60.
In their analysis, the analysts observe that USD/JPY holds within an elevated range of 157.00-160.20 and expect it to remain there for the next 1-3 weeks.
The momentum may suggest a continued rise in USD, but UOB cautions that any advance will likely stay within a narrow 158.60-159.60 range, with breaking above 159.60 unlikely.