Japanese Yen holds a tight trading range against US Dollar – UOB

USD/JPY recorded a modest decline as the Japanese Yen (JPY) gained ground, with trading contained within a narrow intraday range, according to UOB strategists Quek Ser Leang and Lee Sue Ann. In the short term, they expect nearby support and resistance to keep the pair rangebound. Their 1–3 month outlook, however, highlights the risk of further weakness from strong downward momentum, although a return to the January low remains uncertain.

Dollar-Yen remains rangebound as medium-term risks point lower

"24-HOUR VIEW: We expected USD to “edge higher to 158.80” yesterday. However, after rising to a high of 158.59, USD declined sharply to a low of 157.81 before rebounding to close at 158.16 (-0.20%). There has been no shift in directional momentum, and today, USD is likely to range-trade between 157.90 and 158.65."

"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.)