United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note USD/JPY has edged higher to around 162.35, with intraday bias tilted modestly to the upside but capped between 162.10 and 162.65. Over 1–3 weeks, the pair is expected to be contained in a narrower 161.30–163.00 range, while the medium-term outlook allows for further gains as long as price holds above the 21-day EMA near 161.00.

Japanese Yen stays under gentle pressure

"24-HOUR VIEW: Yesterday, we noted “a slight increase in downward momentum,” and we indicated that this “is likely to lead to USD trading in a lower range of 161.70/162.30 rather than a sustained decline.” However, USD edged up to 162.54 before closing slightly higher by 0.12% at 162.38. This time around, there is a slight increase in upward momentum, and the bias for USD is tilted to the upside. That said, any advance is likely to be contained within a range of 162.10/162.65."

"1-3 WEEKS VIEW: We have held 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.” While we are not able to derive much from the price action since then, a narrower 161.30/163.00 range is likely sufficient to contain USD for now."

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