Japanese Yen: Medium-Term Upside Risk Against US Dollar Amid Range-Bound Trading – UOB

Range-bound trading is expected to keep USD/JPY within a narrow intraday band of 157.90 to 158.50, according to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann. For the next one to three weeks, they envisage price action remaining within a slightly tighter corridor of 157.70–158.80. Looking at the 1–3 month horizon, however, they flag rapidly strengthening downward momentum that points to further weakness, although a test of the January low of 152.08 remains uncertain.

Will Dollar Yen Remain Confined to a Narrow Range?

"24-HOUR VIEW: We indicated yesterday that USD “is likely to range-trade between 157.90 and 158.65.” USD subsequently rose to 158.39, dipped to 157.82, and then rebounded to close largely unchanged at 158.13 (-0.02%). The price action still appears to be part of a range-trading phase. Today, we expect USD to trade between 157.90 and 158.50."

"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.” We continue to expect range-trading, but a narrower range of 157.70/158.80 is likely sufficient to hold the price movements for now."

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