Japanese Yen: Trades in a narrow range against US Dollar – UOB

UOB strategists Quek Ser Leang and Lee Sue Ann note that USD/JPY slipped modestly as the Japanese Yen (JPY) strengthened, with intraday price action confined to a narrow band. They see the pair locked in a short-term range between nearby support and resistance, while the 1–3 month view warns that rapid downward momentum could drive further weakness, though reaching the January low remains uncertain.

Dollar-Yen stuck in band, medium-term risk lower

"24-HOUR VIEW: We expected USD to “edge higher to 158.80” yesterday. However, after rising to a high of 158.59, USD declined sharply to a low of 157.81 before rebounding to close at 158.16 (-0.20%). There has been no shift in directional momentum, and today, USD is likely to range-trade between 157.90 and 158.65."

"1-3 WEEKS VIEW: In our most recent narrative from last Wednesday (14 Oct, spot at 158.35), we highlighted that USD “has likely moved into a range-trading phase between 157.50 and 159.05.” Since then, USD has traded within the range, and there is no change in our view."

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