United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/JPY traded quietly between 159.28 and 159.82, closing at 159.68, with a firm underlying tone. The pair is expected to hold a slightly higher intraday range of 159.40–159.95 and a broader 158.80–160.45 band over the next one to three weeks. Longer term, there is scope to rise above 159.45, though the 162.00 high should cap gains.
Dollar-Yen holds firm in upper band
“The underlying tone still appears to be firm, but this is likely to lead to USD trading in a higher range of 159.40/159.95 instead of a sustained advance.”
“As highlighted, the outlook for USD is mixed after the recent sharp but short-lived swings, and USD could trade in a range between 158.80 and 160.45.”
“There is a chance for USD/JPY to rise above 159.45; based on the lackluster upward momentum, any further advance is unlikely to threaten the 2024 high of 162.00.”
