UOB Group analysts suggest the USD may rise to 149.20 against the JPY without any threat.

    by VT Markets
    /
    Jul 29, 2025
    The US Dollar (USD) has the ability to rise against the Japanese Yen (JPY). A critical resistance level to keep an eye on is 149.20, but it may not be tested right away. Recently, the USD climbed to 148.57 and closed higher for three consecutive days at 148.53. The USD may continue to rise, but it may face resistance at 148.90, with support levels at 148.25 and 147.95. Looking forward, if the USD closes securely above 148.25, it could move towards 149.20. While upward movement is starting, it is not strong enough for a long-lasting rise. The strong support level has been raised to 147.40 from 146.65. It’s crucial to monitor these levels to assess future movement. The information given contains predictions that come with risks and uncertainties. It should not be seen as investment advice or recommendations. Always do comprehensive research before making financial decisions, as markets can result in losses, even total capital loss. We accept no liability for errors, losses, or damages arising from the use of this information. As of July 29, 2025, we see the US dollar potentially gaining against the yen. The main resistance level to watch is 149.20, although testing this level does not seem imminent. A closer resistance point is likely around 148.90. Recent economic data supports a stronger dollar. The latest report on the US Consumer Price Index showed inflation at 3.2%, slightly above expectations, which might prevent the Federal Reserve from lowering interest rates. Additionally, recent non-farm payroll data revealed that the economy added 210,000 jobs, indicating a robust American economy. On the other hand, the Bank of Japan announced it will keep its ultra-low interest rates for the next quarter. This growing difference in monetary policy makes the dollar more appealing compared to the yen. Currently, the interest rate gap between US and Japanese 10-year bonds is over 400 basis points, which is an attractive incentive for traders. In the coming weeks, a smart strategy would be to buy call options. Specifically, August and September 2025 calls with a strike price around 149.00 may be valuable if the dollar continues to rise. This approach allows traders to benefit from upward movement while keeping their risk defined. To manage risk, we should watch the support levels at 148.25 and the stronger support at 147.40. A significant drop below 148.25 could indicate a reversal, making put options with a 147.50 strike price a good hedge. This helps prepare for the possibility that the upward trend may not be as stable as it seems. Historically, the 150.00 level has been a psychological barrier, often leading to intervention from Japanese authorities to strengthen their currency, as seen in late 2022 and 2023. As we near this level, we should be ready for more volatility and possible government action.

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