Japanese Yen trades within a range with medium-term upside risk against US Dollar – UOB

A 157.90–158.50 intraday range is expected for USD/JPY by United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann, with recent price action still confined to a narrow band. For the next one to three weeks, they envisage trading within a slightly tighter corridor of 157.70–158.80. Looking ahead 1–3 months, however, they flag a rapid increase in downward momentum that points to further weakness, although whether the January low of 152.08 will be tested remains uncertain.

Dollar Yen Remains Confined to a Narrow Range

"24-HOUR VIEW: We indicated yesterday that USD “is likely to range-trade between 157.90 and 158.65.” USD subsequently rose to 158.39, dipped to 157.82, and then rebounded to close largely unchanged at 158.13 (-0.02%). The price action still appears to be part of a range-trading phase. Today, we expect USD to trade between 157.90 and 158.50."

"1-3 WEEKS VIEW: In our most recent narrative from last Wednesday (14 Oct, spot at 158.35), we highlighted that USD “has likely moved into a range-trading phase between 157.50 and 159.05.” We continue to expect range-trading, but a narrower range of 157.70/158.80 is likely sufficient to hold the price movements for now."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)