Japanese Yen: Bearish momentum builds within broad range against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang highlights USD/JPY at 158.50, with the Japanese Yen still the weakest G10 currency as carry trades persist. Intraday, the Dollar is expected to edge higher toward 158.80, while the key resistance at 159.05 should stay out of reach. Over 1–3 weeks, UOB maintains a range-trading view between 157.50 and 159.05, despite longer-term downside risks.

Dollar-Yen supported but capped below 159.05

"24-HOUR VIEW: USD traded within a range of 157.67/158.33 last Friday and closed largely unchanged at 157.99 (+0.01%). When it was at 157.90 yesterday, we highlighted the following: “Despite range-trading and the largely unchanged close, downward momentum appears to be building. Today, we expect USD to edge lower and test 157.50.” We were incorrect, as after edging lower to 157.68, USD rose sharply to a high of 158.54. This time around, upward momentum appears to be building. Today, USD could edge higher to 158.80. The major resistance at 159.05 is unlikely to come into view. To sustain the momentum buildup, USD must hold above 158.15, with minor support at 158.30."

"1-3 WEEKS VIEW: In our most recent narrative from last Wednesday (14 Oct, spot at 158.35), we highlighted that USD “has likely moved into a range-trading phase between 157.50 and 159.05.” Since then, USD has traded within the range, 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. Know more.)