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USD/JPY surges past 163 for first time since 1986

Analysts at UOB flag intervention risk if the yen keeps weakening, with upside targets toward 163.50 while support is seen at 163.00.

Reported · Written up by our desk · Major Pairs

USD/JPY has surged above 163 for the first time since 1986, signaling fresh downside pressure on the Japanese yen, according to a note shared by United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann via FXStreet.

They said the move increases the risk of Japanese authorities intervening, as the dollar continues to strengthen against the yen.

In the near term, UOB expects upside momentum with support at 163.00 and 162.75. For the next one to three weeks, the pair is targeted near 163.50, but they conditioned further gains on USD holding above 162.40.

On a one to three month view, further gains are possible if USD/JPY stays above the 21 day EMA around 161.00, while the pair’s intraday range has already pushed to a high of 163.23.

Latest closeUSD/JPY 162.90 ▲0.3%

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