USD/JPY: Rebound finds resistance – OCBC

Rebound in USD/JPY continued as the Bessent-Kato meeting saw no mention of FX levels. Pair was last at 143.43 levels, OCBC's FX analysts Frances Cheung and Christopher Wong note.

Rebound risks not ruled out

"Kato said that he and Bessent also confirmed in their meeting that foreign exchange rates 'should be determined by the market and that excessive volatility can have a negative impact on economic and financial stability'."

"The rebound in USD/JPY was in line with our earlier caution that if meeting yields no conclusive outcome with regards to FX, then USD/JPY may extend its run-up."

"Daily momentum turned mild bullish while RSI rose. Rebound risks not ruled out. Resistance at 144.40/70 levels (21DMA, 23.6% fibo retracement of 2025 high to low), 145.40. Bias to lean against strength. Support at 141.60, 140.50 levels."