UOB strategists Quek Ser Leang and Lee Sue Ann reported that the USD/JPY currency pair briefly climbed to 158.50 before reversing to 157.83, ultimately closing nearly unchanged at 158.06, a marginal decrease of 0.03% [1]. The analysts noted that the short-term bias has shifted to the downside, targeting a move toward 157.40, though they expressed uncertainty about whether the downward momentum would be strong enough for a decisive break below this level [1]. Resistance levels are identified at 158.10 and 158.30 [1].
For the one- to three-week outlook, UOB expects USD/JPY to trade sideways within a range of 156.35 to 158.70, maintaining that there has been no significant shift in directional momentum [1]. The longer-term charts continue to indicate downside risk for the pair, but no immediate change in trend is anticipated [1].
The strategists highlighted that while there was an upside bias when USD was at 158.30, the momentum was insufficient to sustain a move toward 158.70, and the pair subsequently retreated [1]. Overall, the market remains rangebound, with no clear breakout in either direction [1].
CONCLUSION
UOB strategists see the Japanese Yen maintaining a bullish bias within a broad trading range against the US Dollar, with no significant directional momentum shift. The market is expected to remain rangebound in the near term, with downside risks persisting but not yet materializing.