Core Viewpoint - The USD/JPY exchange rate is currently a focal point for investors amid ongoing volatility in the foreign exchange market, with predictions suggesting a potential test of the 145.00 level, while the major resistance at 145.50 is expected to remain intact in the short term [1][3]. Short-term Outlook - There is a possibility for the USD/JPY exchange rate to test the critical level of 145.00 due to the complex global macroeconomic environment and differences in monetary policy and economic performance between the US and Japan [3]. - The US economy shows resilience in the job market despite fluctuations in economic data, and hawkish signals from the Federal Reserve could attract international capital into USD assets, pushing the USD/JPY rate closer to 145.00 [3]. - Japan's long-standing accommodative monetary policy continues to exert pressure on the yen, providing support for the upward movement of the USD/JPY exchange rate [3]. - The technical resistance at 145.50 is expected to limit further upward movement due to significant sell orders accumulated around this level [3]. Long-term Outlook - The USD/JPY exchange rate is likely to fluctuate within the range of 143.00 to 145.50, based on a comprehensive assessment of various factors [4]. - The economic growth patterns and development pace of the US and Japan differ significantly, with the US economy driven by consumption, investment, and international trade, while Japan faces challenges such as an aging population and insufficient domestic demand [4]. - Japan's strengths in high-end manufacturing and technological innovation provide some stability to its economy, which helps to limit excessive depreciation of the yen [4]. Monetary Policy Impact - The divergence in monetary policy between the two countries is a key factor influencing the long-term trajectory of the USD/JPY exchange rate [5]. - The Federal Reserve adjusts its monetary policy flexibly in response to economic conditions, while the Bank of Japan maintains ultra-loose monetary policies to stimulate growth and combat deflation [5]. - This policy divergence will affect the supply and demand dynamics of both currencies, contributing to the expected range of 143.00 to 145.50 for the USD/JPY exchange rate [5]. - Global geopolitical developments, changes in the international trade environment, and fluctuations in investor risk appetite will also impact the USD/JPY exchange rate [5].

Core Viewpoint - The USD/JPY pair is likely to test the 145.00 level, with the major resistance at 145.50 being less likely to be threatened [1] Summary by Relevant Sections - **Market Analysis** - Analysts from UOB Group, Quek Ser Leang and Peter Chia, suggest that the USD/JPY pair may trade within the range of 143.00 to 145.50 in the long term [1]