Analysts at UOB Group, Quek Ser Leang and Peter Chia, suggest that while the USD/JPY pair may decline toward 146.30, the likelihood of a deeper drop below that level is low. In the near term, the pair is expected to remain range-bound.
Short-Term Outlook (24-Hour View):
Following Wednesday’s low of 146.57, the USD rebounded and traded between 146.58 and 147.51 on Thursday, eventually closing modestly higher at 147.23 (+0.12%).
“The recent sharp drop looks excessive. Instead of extending the decline, USD is more likely to continue consolidating between 146.70 and 147.70 today,” the analysts noted.
Medium-Term Outlook (1–3 Weeks):
UOB maintains that the USD’s recent sharp pullback may not have much further to run. While a test of the 146.30 support remains possible, the probability of a sustained move below that level is low.
“Only a break above 148.20 (previously 148.55) would signal that the downward pressure is easing and that the pair is stabilising,” they added.
Key Levels to Watch:
- Support: 146.30
- Resistance: 147.70, then 148.20