United Overseas Bank strategists Quek Ser Leang and Lee Sue Ann note that USD/JPY lacks clear directional cues in the short term, with intraday price action expected to remain confined between 157.55 and 158.45. Over the next one to three weeks, they see the pair trading in a broader 156.35–158.70 range. On a one to three month horizon, they highlight building downward momentum and potential further USD/JPY weakness.
Short-term ranges, medium-term downside risk
"24-HOUR VIEW: Yesterday, we indicated that USD “could trade between 157.10 and 158.10.” USD subsequently fluctuated between 157.41 and 158.29, closing largely unchanged at 157.90 (+0.04%). The price action does not provide any clear directional clues. Today, USD could trade between 157.55 and 158.45."
"1-3 WEEKS VIEW: We continue to hold the same view as yesterday (05 Oct, spot at 157.65). As highlighted, rather than continuing to pull back within the previously expected 156.00/158.70 range, USD “is likely to trade in a range between 156.35 and 158.70.”"
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