United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that USD/JPY has seen a slight increase in downward momentum, pointing to a lower intraday range around 161.70–162.30. Over the next one to three weeks, they maintain a mixed outlook, expecting the pair to trade between 160.60 and 163.00. On a one to three month horizon, they see scope for further gains as long as USD/JPY stays above the 21-day EMA near 161.00.

Dollar Yen seen holding broad range

"24-HOUR VIEW: USD fluctuated between 161.62 and 162.47 on Wednesday, closing modestly lower by 0.12% at 162.23. Yesterday, we stated that “the price action provides no fresh clues, USD could trade in a range between 161.75 and 162.50.” USD then traded within a narrower range than expected (161.87/162.42), closing largely unchanged at 162.18 (-0.03%). There has been a slight increase in downward momentum, but this is likely to lead to USD trading in a lower range of 161.70/162.30 rather than a sustained decline"

"1-3 WEEKS VIEW: We have the same view since last Tuesday (07 Jul, spot at 162.10), when we indicated that “the outlook for USD is mixed,” and it could “trade between the two major levels of 160.60 and 163.00.” Since then, USD traded within the range, and we continue to hold the same view for now."

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