USD/JPY might trade in a range between 146.40 and 148.40 – UOB Group

Further range-trading seems likely, but the softer underlying tone suggests a lower range of 146.75/147.80. In the longer run, outlook is mixed; USD could trade in a range between 146.40 and 148.40, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Outlook for USD/JPY is mixed

24-HOUR VIEW: "After USD fluctuated between 146.97 and 147.90 two days ago, we indicated the following yesterday: 'We are not able to derive much from the price movements. Today, we continue to expect range-trading, most likely between 147.00 and 148.00.' USD then traded in a higher range than expected (147.27/148.18) before closing largely unchanged at 147.39 (-0.01%). Further range-trading seems likely today, but the softer underlying tone suggests a lower range of 146.75/147.80."

1-3 WEEKS VIEW: "Our update from Monday (25 Aug, spot at 147.35) remains valid. As highlighted, 'The recent sharp price swings, which failed to result in a sustained directional move, have led to a mixed outlook for USD. For the time being, USD could trade in a range between 146.40 and 148.40'."