Japanese Yen: Limited losses within 153.30–156.30 band against US Dollar – UOB

UOB’s Quek Ser Leang and Lee Sue Ann report USD/JPY has extended its rebound to around 155.08, with modest upward momentum suggesting scope for a test above 155.50, while 156.30 remains a distant cap. Over the 1–3 week horizon, they see the pair edging higher but confined to a broad 153.30–156.30 range, with support at 154.40.

Yen under pressure but losses seen as limited

"24-HOUR VIEW: USD rose to a high of 154.99 two days ago. When it was at 154.45 yesterday, we indicated the following: “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.” We were not wrong, as USD rose to 155.23 before settling at 155.08 (+0.47%). The increase in upward momentum remains modest, but today, USD could rise above 155.50. The next resistance at 156.30 is unlikely to come into view. On the downside, a break below 154.40 (minor support is at 154.80) would indicate that USD has likely entered a range-trading phase."

"1-3 WEEKS VIEW: We revised our view from negative to slightly positive yesterday (15 Sep, spot at 154.45). We highlighted that “downward momentum has faded, and there has been a tentative buildup in upward momentum.” We also highlighted that USD “could edge higher, but based on the prevailing momentum, any advance is likely to stay within a 153.30/156.30 range.” Our view remains unchanged."

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