UOB analysts see downside risks for USD/JPY after its sharp decline, though oversold conditions may limit further losses.
The Japanese yen’s sudden rebound against the US dollar has altered the short-term outlook for USD/JPY, which plunged to 160.62. Analysts now see a lower bias for the pair, though oversold conditions suggest potential for a rebound within the 160.80–161.90 range.
The drop follows a period of heightened volatility in the currency pair, with prior resistance levels now acting as potential support. Market participants are closely monitoring these levels for signs of stabilization or further weakness.
No immediate market reaction was specified, but traders may adjust positions based on the revised outlook.