USD/JPY: Likely to trade in a range between 146.90 and 147.90 – UOB Group

US Dollar (USD) is likely to trade in a range between 146.90 and 147.90. In the longer run, a narrower range of 146.50/148.50 is likely enough to contain the price movements for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Markets continue to expect range-trading

24-HOUR VIEW: "Yesterday, we expected USD to 'trade in a range between 147.35 and 148.20.' However, instead of range-trading, USD fell to a low of 146.85, recovering quickly to close at 147.32 (-0.23%). There is no clear increase in downward momentum, and we continue to expect USD to trade in a range today, most likely between 146.90 and 147.90."

1-3 WEEKS VIEW: "In our most recent narrative from last Friday (15 Aug, spot at 147.15), we highlighted that USD 'has likely moved back into a range-trading phase, probably between 146.50 and 148.80.' While we continue to expect range-trading, a narrower range of 146.50/148.50 is likely enough to contain the price movements for now."