Japanese Yen: Bearish bias within 153.30–156.30 against US Dollar - UOB

UOB’s Quek Ser Leang reports USD/JPY reversed earlier downside expectations, dipping to 153.29 before surging to 154.99 and closing at 154.35. The bank now sees scope for a move above 155.00, though 155.50 is likely out of reach near term. Over 1–3 weeks, USD/JPY is expected to edge higher but remain confined within a 153.30–156.30 range as downward momentum has faded.

Dollar Yen shifts from bearish to mildly bullish

"24-HOUR VIEW: While we highlighted yesterday that “the bias for USD is on the downside,” we held the view that “any decline should stay within a 153.05/154.30 range.” The subsequent price movements did not unfold as expected. USD dipped to 153.29 and then rose sharply to 154.99 before closing at 154.35 (+0.53%). Upward momentum has increased, albeit not significantly. Today, USD could rise above 155.00, but the next resistance at 155.50 is likely out of reach. On the downside, a breach of 153.90 (minor support is at 154.15) would indicate that the current upward pressure has eased."

"1-3 WEEKS VIEW: We have been holding a negative USD stance since early this month. Last Tuesday (08 Sep, spot at 153.95), we indicated that “the price action suggests USD is likely to continue to weaken, and the next support level to watch is the year-to-date low of 152.08.” After USD rebounded, in our most recent narrative from Friday (11 Sep, spot at 154.50), we highlighted that “downward momentum is slowing, and the odds of 152.08 coming into view are diminishing.” Yesterday, USD broke above our ‘strong resistance’ at 154.90 with a high of 154.99. Downward momentum has faded, and there has been a tentative buildup in upward momentum. From here, USD could edge higher, but based on the prevailing momentum, any advance is likely to stay within a 153.30/156.30 range."

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