Japanese Yen: Slightly bullish within broad range against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann describe USD/JPY price action as lacking fresh clues after swings between 158.33 and 159.13, leaving intraday trade likely confined to 158.55–159.30. Over the coming weeks they keep a slightly negative bias, looking for the pair to edge lower but stay contained inside a broader 156.60–159.60 range as momentum fades.

Softer tone but contained declines

“24-HOUR VIEW: Last Thursday, USD dipped to 158.00 and then rebounded strongly to close at 159.05 (+0.56%). When it was at 159.00 on Friday, we pointed out that “the rebound appears to be overdone.” We added, “instead of continuing to rebound, USD is more likely to trade in a range between 158.50 and 159.35.” The subsequent price movements did not quite unfold as expected. USD fell briefly to a low of 158.33 and then rebounded to close little changed at 158.93 (-0.08%). The price action provides no fresh clues. Today, USD could trade between 158.55 and 159.30.”

“1-3 WEEKS VIEW: We revised our USD view to slightly negative last Thursday (20 Aug, spot at 158.30). We highlighted that “downward momentum is starting to build, but it is insufficient for a sustained decline.” We also highlighted that USD “could edge lower, but any decline should be contained within a 156.60/159.60 range.” Since then, USD mostly traded in a range and the build-up in momentum is fading. That said, we will continue to hold the same view for now.”

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