USD/JPY: Higher range but capped – UOB

FXStreet Insights Team FXStreet

UOB’s strategists Quek Ser Leang and Lee Sue Ann note USD/JPY remains range-bound despite a brief dip to 158.93 and rebound to 159.78, closing near 159.61. They see slightly stronger upward momentum shifting the intraday band to 159.25–159.90, while for 1–3 weeks he expects decreasing volatility to keep price action contained between 159.00 and 160.50.

Dollar-Yen trades in higher band

"24-HOUR VIEW: When USD was at 159.45 yesterday, we indicated that “the price movements still appear to be part of a range-trading phase,” and we expected USD to “trade between 159.25 and 159.80.” USD then dropped to 158.93, rebounded quickly to 159.78 before closing at 159.61 (+0.12%). There has been a slight increase in upward momentum, but this is likely to lead to USD trading in a higher range of 159.25/159.90 rather than a sustained advance."

"1-3 WEEKS VIEW: Last Friday (24 Apr, spot at 159.70), we highlighted that “we continue to expect USD to trade in a range, but the decreasing volatility suggests a range of 159.00/160.50 is likely enough to contain the price movements for now.” Yesterday, USD dipped briefly below 159.00 (low of 158.93) and then rebounded. There is no increase in momentum, 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.)

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FXStreet Insights Team

FXStreet

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