USD/JPY Price Action Stuck in Overbought Territory

According to UOB's Quek Ser Leang and Lee Sue Ann, the USD/JPY pair remains supported at around 157.30, with short-term price action expected to stay within a narrow range of 156.90-157.80.

The analysts believe that there is room for further USD strength in the next one to three weeks, but note that overbought conditions could limit gains near the key resistance level at 158.40.

As long as the dollar holds above its key support level at 156.20, the bullish outlook remains intact, they say.