UOB analysts maintain a bullish outlook for the pair, targeting 163.50 while support at 162.40 remains intact.
The US dollar consolidates near 40-year highs against the Japanese yen, trading between 162.80 and 163.30 after recent volatility. UOB analysts note limited fresh signals from price action but expect further gains toward 163.50 in the coming weeks.
Support at 162.40 remains critical, with the pair holding above its 21-day exponential moving average at 161.00. Earlier this week, USD/JPY briefly dipped to 162.77 before recovering to close at 163.13, reflecting resilience in the uptrend.
The medium-term outlook stays positive as long as the pair avoids a sustained break below 162.40. Analysts see room for extension beyond current levels, contingent on broader dollar strength and yen weakness.