Analysts expect the pair to trade within a 156.60–159.60 range after a sharp 0.91% decline in the dollar.
The Japanese yen strengthened against the US dollar, with USD/JPY falling sharply to around 158.00, erasing recent upside momentum. The pair closed at 158.16 after a 0.91% drop, though analysts view the move as overdone rather than the start of a sustained decline.
Earlier projections had favored a bullish bias for the dollar, with a target range of 158.00–160.20. However, the sudden drop to 158.03 has shifted expectations, with downside momentum building but insufficient to break below 156.60. Intraday movements are now seen limited to 157.70–158.70.
Market participants are monitoring the pair’s ability to hold above key support levels, as further declines may test the lower bound of the projected range.