Japanese Yen: Rangebound Against the US Dollar – UOB

USD/JPY remained confined to a narrow intraday band as a firmer Japanese Yen (JPY) pushed the pair modestly lower, according to UOB strategists Quek Ser Leang and Lee Sue Ann. Their short-term outlook points to continued range-bound trading between nearby support and resistance. Over 1–3 months, however, they warn that strong downward momentum could extend the decline, although a return to the January low remains uncertain.

Can Dollar-Yen break its range as medium-term downside risks persist?

"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.)