Japanese Yen: Upside risk while stuck in range against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight USD/JPY traded quietly between 157.27 and 157.87, closing at 157.74, with intraday momentum indicators flat. The pair is expected to stay in a 157.30–158.20 band near term. Over 1–3 weeks, they still see downside risk toward 155.00 and 154.10 as long as strong resistance at 160.00 is not breached.

Japanese Yen supported by downside bias

"24-HOUR VIEW: Yesterday, we noted that “momentum indicators are turning flat,” and we indicated that USD “could trade in a range between 157.00 and 158.30.” USD subsequently traded within a narrower range than expected (157.27/157.87), closing marginally higher by 0.01% at 157.74. Momentum indicators remain flat, and today, USD could trade between 157.30 and 158.20."

"1-3 WEEKS VIEW: The following excerpts from our update yesterday remains valid: “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.)