Japanese Yen: UOB sees rangebound trading with upside risk against US Dollar

157.00–158.60 defines the broader USD/JPY trading range. United Overseas Bank strategists Quek Ser Leang and Lee Sue Ann see the pair staying in a range-trading phase, with intraday levels also shaping price action. Although short-term momentum is not decisively bearish, their 1–3 month outlook flags a sharp acceleration in downward momentum, signalling further Dollar weakness against the Japanese Yen.

157.00–158.60 range holds as momentum turns 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."

(An Artificial Intelligence tool helped produce this article, which was reviewed by an editor. Find out more.)