Japanese Yen: Broad range persists against US Dollar despite volatility – UOB

USD/JPY closed at 158.42. United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight sharp volatility, with the pair moving between 157.39 and 158.74 as falling US yields supported the Japanese Yen. With little directional conviction for intraday trading, they forecast a 157.70–158.70 range. Their one-to-three-week outlook remains one of range-trading between 157.00 and 159.00.

157.00–159.00 range anchors consolidation outlook

"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.)