The US Dollar (USD) is expected to retest the 148.90 level against the Japanese Yen (JPY) before stabilising. A key support level at 148.63 is unlikely to be reached soon, according to analysts.

In the short term, despite a recent drop, USD conditions are seen as oversold, indicating a potential for further decline. If the USD surpasses the 151.05 resistance mark, it may signal a stabilisation after a period of weakness. Current resistance levels are at 149.75 and 150.10.

We anticipate the US Dollar making another attempt at the 148.90 mark against the Japanese Yen before settling into a steadier range. Analysts suggest the 148.63 support level is unlikely to come into play anytime soon, which provides traders with a reference point in assessing downside risks.

Although the Dollar has pulled back recently, technical indicators suggest it has moved into oversold territory. This typically implies that further declines may be limited in the near term, though it does not necessarily mean an immediate sharp reversal. If the Dollar breaks above 151.05, it would suggest that the recent period of weakness has run its course, providing traders with a clear indication of potential stabilisation.

From here, we are closely watching the 149.75 and 150.10 levels as potential hurdles. If the price struggles to hold above them, short-term momentum could favour further tests of support. However, should the Dollar successfully reclaim these levels with sustained buying pressure, it would strengthen the case for a move towards the 151.05 threshold.

In terms of positioning, traders should remain mindful of the broader trend while also considering short-term technical signals. Keeping a close eye on shifts in momentum will be important when managing risk in derivative markets. If price action begins to consolidate, it may create entry opportunities, but sharp movements cannot be ruled out, particularly if external factors such as economic releases or central bank commentary shift sentiment unexpectedly.

While the backdrop remains fluid, traders should assess whether price developments align with broader market conditions. If resistance levels continue to hold, there could be renewed selling interest, but if buyers step in convincingly, we may see another leg higher.