USD/JPY Consolidation Imminent as Pair Retreats from Peak
The USD/JPY currency pair has retreated from its recent peak of 162.42 as analysts at UOB expect consolidation within a specific range. According to Quek Ser Leang, the pair's rise has placed it in overbought territory. The bank now forecasts near-term consolidation, with the dollar likely to hold between 161.50 and 162.45 as the pullback tempers scope for additional upside.
UOB previously called for a range of 161.00-161.90 but has shifted its focus to a more defined band following the sharp rally. The bank reiterates that 160.60 is a key level, having linked a close below it to a move towards 160.00, while 162.45 remains strong resistance.
The rapid rise in the US dollar against the yen appears to have run out of steam, suggesting we are entering a period of consolidation. Market drivers and range expectations point to trading within a defined range for the next few weeks, with support at 160.60 and resistance at 163.00.