Japanese Yen: Bearish bias within tight range against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/JPY’s slight increase in upward momentum after trading between 158.82 and 159.59 still falls short of signaling a sustained advance, keeping intraday price action likely confined to 159.00–159.80. Over the next 1–3 weeks, the bias remains tilted to the upside, with a 158.00–160.20 range expected to contain moves.

Japanese Yen stays under mild pressure

"24-HOUR VIEW: We highlighted yesterday that “the outlook is unclear, and USD could trade between 158.80 and 159.60.” USD subsequently fluctuated between 158.82 and 159.59, closing little changed at 159.43 (+0.08%). The price action has resulted in a slight increase in upward momentum, but it is insufficient to indicate a sustained advance. Today, USD could edge higher, but it is likely to stay within a 159.00/159.80 range."

"1-3 WEEKS VIEW: We have held the view that “the bias for USD is on the upside” since a week ago. In our most recent narrative from last Friday (14 Aug, spot at 159.40), we highlighted the following: “While USD has been unable to make much headway on the upside, the underlying tone still appears to be firm, and the bias remains tilted to the upside. That said, a narrower range of 158.00/160.20 is likely enough to contain the price movements for now.” We continue to hold the same view."

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