Japanese Yen: Mild upside bias against US Dollar within range - UOB

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann observe that USD/JPY held within 157.67–158.33 on Friday, closing almost unchanged at 157.99. Short-term momentum is tilting lower, with scope to test 157.50, though a decisive break below that level is not expected. Over the next 1–3 weeks, the pair is still seen consolidating in a broad 157.50–159.05 range.

USD/JPY retains a slight downside bias within range

"24-HOUR VIEW: We expected USD to “range-trade between 157.80 and 158.50” last Friday. USD then traded within a range of 157.67/158.33, closing largely unchanged at 157.99 (+0.01%). Despite range-trading and the largely unchanged close, downward momentum appears to be building. Today, we expect USD to edge lower and test 157.50. A break below this level is not ruled out, but based on the prevailing momentum, a clear break below this level is unlikely. Resistance is at 158.10, followed by 158.30."

"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.” Since then, USD has traded within the range, and there is no change in our view."

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