USD/JPY: Firm tone but capped below 162.00 – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/JPY traded quietly between 159.28 and 159.82, closing at 159.68, with a firm underlying tone. The pair is expected to hold a slightly higher intraday range of 159.40–159.95 and a broader 158.80–160.45 band over the next one to three weeks. Longer term, there is scope to rise above 159.45, though the 162.00 high should cap gains.

Dollar-Yen holds firm in upper band

"The underlying tone still appears to be firm, but this is likely to lead to USD trading in a higher range of 159.40/159.95 instead of a sustained advance."

"As highlighted, the outlook for USD is mixed after the recent sharp but short-lived swings, and USD could trade in a range between 158.80 and 160.45."

"There is a chance for USD/JPY to rise above 159.45; based on the lackluster upward momentum, any further advance is unlikely to threaten the 2024 high of 162.00."

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