Japanese Yen: Gains seen while below 160.00 against US Dollar – UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann describe USD/JPY price action as muted, with the pair confined to 157.15–157.95 and momentum turning flat. They expect intraday range trading between 157.00 and 158.30. Over the next 1–3 weeks, the risk remains to the downside toward 155.00 and 154.10, provided the strong resistance at 160.00 is not breached, despite some slowing in downward momentum.
Range trade but focus on lower levels
"24-HOUR VIEW: Following USD’s price action on Monday, we stated yesterday that “the sharp swings have resulted in a mixed outlook.” We also stated that USD “could trade between 156.20 and 158.50.” We did not expect muted price action as USD traded within a relatively tight range between 157.15 and 157.95. Momentum indicators are turning flat, and today, USD could trade between 157.00 and 158.30."
"1-3 WEEKS VIEW: In our most recent narrative from Monday (03 Aug, spot at 156.20), we highlighted that “the risk for USD remains firmly on the downside, and the levels to watch are 155.00 and 154.10.” Although USD fell briefly to 155.21, it has since rebounded, and downward momentum has slowed somewhat. That said, we will continue to hold the same view as long as the ‘strong resistance’ at 160.00 (no change in level) is not breached."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
