Japanese Yen trades sideways with upside risk against US Dollar – UOB

A broader 157.00–158.60 range, alongside intraday levels, continues to guide USD/JPY price action, according to United Overseas Bank strategists Quek Ser Leang and Lee Sue Ann, who see the pair remaining in a range-trading phase. Although short-term momentum is not clearly bearish, they highlight a sharp build-up in downward momentum in their 1–3 month outlook, suggesting further US Dollar weakness against the Japanese Yen.

USD/JPY remains range-bound as momentum shifts lower

"24-HOUR VIEW: We indicated last Friday that USD “could trade between 157.20 and 158.20.” However, USD fell to a low of 156.94 before quickly rebounding to close at 157.53 (-0.10%). Despite declining, there has been no increase in downward momentum, and today, USD could trade between 157.10 and 158.05."

"1-3 WEEKS VIEW: In our most recent narrative from last Wednesday (28 Oct, spot at 157.85), we highlighted that USD “has likely entered a range-trading phase, and for the time being, we expect it to trade between 157.00 and 158.60.” On Friday, USD dipped briefly below 157.00 to a low of 156.94 before rebounding. Given that there is no sustained break below 157.00, we will continue to hold the view that USD is likely to trade between 157.00 and 158.60."

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