According to United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann, the USD/JPY currency pair is currently locked in a range-trading phase, with a slightly firmer tone keeping the pair in a higher intraday band of 158.80–159.45 [1]. The analysts note that the 1–3 week view for USD/JPY is now neutral, following the fading of an earlier downside bias. They expect the pair to oscillate between 157.90 and 159.80 in the near term, rather than extend losses [1].
Recent trading activity saw USD/JPY move between 158.33 and 159.13 last Friday, closing little changed at 158.93 (-0.08%). On the following day, the pair traded within a range of 158.59/159.28 and closed at 159.08 (+0.09%), further supporting the view that price action is part of a range-trading phase [1]. The analysts suggest that the firmer underlying tone points to USD/JPY likely trading in a higher range of 158.80/159.45 in the immediate term [1].
Previously, UOB had a slightly negative outlook for USD/JPY, highlighting that downward momentum was starting to build but was insufficient for a sustained decline. The analysts had expected any decline to be contained within a 156.60/159.60 range. However, since then, the build-up in downward momentum has faded, and the pair has traded mostly in a range [1].
Looking ahead, UOB expects USD/JPY to remain range-bound between 157.90 and 159.80, with no strong directional bias evident at this time [1].
CONCLUSION
UOB analysts now see USD/JPY trading within a defined range of 157.90–159.80, as previous downside momentum has dissipated. The market is expected to remain neutral and range-bound in the near term, with no clear signals for a breakout in either direction.