The USD/JPY pair is showing signs of stabilization, trading within a tight consolidation range as bearish momentum fades. After testing a low of 144.64, the pair has bounced modestly, suggesting limited downside pressure in the near term.
According to FX strategists from UOB Group, the US dollar is unlikely to weaken further, with the immediate range expected between 144.60 and 145.70 in the short term. While previous sessions hinted at potential downside expansion, the currency pair appears to be holding firm above key support.
📊 24-Hour Technical View: No Breakdown Yet, Sideways Action Likely
In the short term, USD/JPY has lost its downward steam. Despite dipping toward 144.64 during the Asian session, strong buying interest near the 144.50 support level prevented any further decline. The pair eventually settled at 144.85, down 0.53% on the day.
With no additional selling pressure observed, analysts now expect the pair to oscillate between 144.60 and 145.70. Traders should watch for low-volume consolidations or false breakouts until a stronger directional move emerges.
📉 Medium-Term Forecast: Range Tightens to 144.50–147.30
UOB analysts Quek Ser Leang and Peter Chia noted in their medium-term outlook that the USD/JPY pair remains locked in a consolidation phase, but the range has narrowed.
“The USD remains in a broad consolidation, but we now expect it to trade within a more refined range between 144.50 and 147.30,” the analysts said.
A decisive break below 144.50 could trigger a sharper decline, while a sustained move above 147.30 may revive bullish momentum. Until then, the pair is likely to drift within the defined channel as markets search for a fresh catalyst — possibly from the Federal Reserve or upcoming macroeconomic data.
🔎 What to Watch
- Support levels: 144.60 and 144.50
- Resistance levels: 145.70 and 147.30
- Potential breakout zone: Close watch on any decisive moves beyond these boundaries
- Catalysts: Fed commentary, US Treasury yields, BoJ policy remarks
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