USD/JPY: The pair to likely trade between 159.35 and 159.95 – UOB Group

The US Dollar (USD) is likely to trade sideways between 159.35 and 159.95. It could break above 160.00 but note that there is another resistance level at 160.25, UOB Group FX strategists suggest.

USD/JPY has a chance to break above 160.00

24-HOUR VIEW: “Yesterday, we held the view that ‘as long as USD remains above 159.30, it could rise above 160.00, potentially reaching 160.25.’ The subsequent price action did not evolve as we expected. USD dropped sharply, but briefly to 159.31 before recovering to close at 159.59 (-0.13%). The price action is likely part of a sideways trading phase. Today, we expect USD to trade between 159.35 and 159.95.”

1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (24 Jun, spot at 159.85). As highlighted, USD could break above 160.00, but note that there is another resistance level at 160.25. On the downside, should USD break below 158.80 (no change in ‘strong support’ level), it would indicate that the USD strength from early last week has eased.”