USD/JPY Under Pressure: Dollar Edges Toward 143.80 – UOB

USD/JPY: USD Bias on the Downside – UOB Group

The US Dollar (USD) is expected to edge lower against the Japanese Yen (JPY) to a support level of 143.80, with a possible further decline toward 143.30, according to UOB Group's FX strategists, Quek Ser Leang and Peter Chia. However, a significant decline below these levels seems unlikely in the short term.

Short-Term Outlook:
For the 24-hour view, UOB analysts previously anticipated a range-bound movement between 144.60 and 145.70 for USD/JPY. However, the pair rallied up to 145.51 before pulling back to 144.07 and closing at 144.50, reflecting minimal negative momentum. A further dip toward 143.80 remains possible, but breaking below this level does not appear likely in the near term. Resistance is expected at 144.75 and 145.10.

Medium-Term Outlook:
Over the next 1-3 weeks, UOB suggests the USD/JPY pair will likely remain in a consolidation phase, with a downside bias. They predict a move toward 143.80, and possibly to 143.30, as long as USD/JPY stays below 145.80. Despite the current sideways action, a stronger downward momentum could push the pair lower in the coming weeks.

This cautious outlook points to a short-term weakening of the US Dollar against the Japanese Yen, but significant declines seem unlikely for now.