FX analysts Quek Ser Leang and Peter Chia from UOB Group suggest that the USD/JPY pair may re-test the 153.00 level before experiencing a more significant pullback. Despite being overbought in the short term, the broader trend still favors further USD strength.
Short-Term Outlook (24-Hour View):
The US Dollar rallied strongly two days ago. When USD/JPY was trading at 152.30, UOB noted that although momentum was strong, it remained uncertain if 153.00 would be breached. The pair then hit a high of 152.99 before pulling back slightly, ultimately closing higher for a fifth consecutive day at 152.68 (+0.51%).
While the pair is currently in overbought territory, there remains a possibility of another attempt to break above 153.00 before a more meaningful correction. Key support levels are seen at 152.00, followed by 151.50.
Medium-Term Outlook (1–3 Weeks):
UOB turned bullish on USD/JPY at the start of the week. As of October 7 (when the pair was at 150.35), analysts highlighted that further USD gains are likely, with 153.80 being the next major level to watch. This outlook remains valid as long as the strong support at 150.90 holds.
