Japanese Yen Stays Within Broad Range Against US Dollar Despite Volatility – UOB

A 157.39–158.74 trading range and a close at 158.42 marked a highly volatile session for USD/JPY, according to United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann, as declining US yields lent support to the Japanese yen. With little indication of a clear intraday direction, they expect trading between 157.70 and 158.70. Their one-to-three-week outlook remains for range-bound trading between 157.00 and 159.00.

USD/JPY remains set for broad range-bound trading

"24-HOUR VIEW: After rising to a high of 158.76 on Tuesday, USD pulled back sharply in the early Asian session yesterday. When it was at 158.00, we highlighted that “the pullback could extend, but it is unlikely to reach 157.50.” We did not expect the ensuing volatility as USD plummeted to 157.39 and snapped back up to a high of 158.74. USD closed at 158.42 (-0.15%). We are not able to derive much from the price action. Today, USD could trade between 157.70 and 158.70."

"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 we expected “it to trade between 157.00 and 158.60.” After USD broke above 158.60 with a high of 158.76, we highlighted yesterday that “we continue to expect range-trading, but we now expect a wider range of 157.00/159.00.” Our view remains unchanged."

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