Japanese Yen: Pressure builds near 159 against US Dollar – UOB

Source Fxstreet

UOB’s Quek Ser Leang and Lee Sue Ann maintain a constructive view on USD/JPY after the pair advanced toward 158.84. Intraday, a push above 159.00 is anticipated, though staying above this barrier is uncertain and 159.40 is seen as distant resistance. On a 1–3 week horizon, a clear break of 159.00 would target 159.40, with strong support now raised to 157.90.

Dollar strength tests key Yen resistance

"24-HOUR VIEW: USD rose to a high of 158.42 last Thursday. When USD was at 158.40 in the early Asian trade on Friday, we indicated that “the renewed upward momentum suggests USD could rise further to 158.70.” However, we noted that “the major resistance at 159.00 is unlikely to come into view for now.” Our view was not wrong, as USD rose to a high of 158.84. While upward momentum has not increased by much, USD could edge above 159.00 today. However, it remains to be seen if it can maintain a foothold above this level. The next resistance at 159.40 is unlikely to come into view. Supports are at 158.60 and 158.40"

"1-3 WEEKS VIEW: Last Tuesday (12 May, spot at 157.30), we highlighted that “while there is room for USD to continue to recover, any advance is expected to face significant resistance at 158.30.” After USD broke above 158.30, we highlighted the following on Friday (15 May, spot at 158.40): “The increase in momentum is likely to lead to further advance in USD. The level to watch is 159.00. Overall, only a breach of 157.40 (‘strong support’ level was at 157.20 yesterday) would indicate that USD is not rising further. On a short-term note, 157.90 is already a firm support level.” We continue to hold the same view, but we are revising the ‘strong support’ level to 157.90. Looking ahead, if USD breaks clearly above 159.00, the next level to watch is 159.40."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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