UOB’s Quek Ser Leang and Lee Sue Ann now see USD/JPY in a neutral, range-trading phase after earlier upside momentum faded. The pair is expected to hold between 159.20 and 160.30 in the near term, with intraday ranges around 159.65–160.15, while the 1–3 month outlook still allows for a test of the rising wedge top near 161.15.

Neutral tone with scope for higher levels

"24-HOUR VIEW: Yesterday, we expected USD to “trade in a range between 159.60 and 160.15.” USD then traded within a narrower range than expected (159.70/160.07), closing marginally lower by 0.01% at 160.01. The price action provides no fresh clues, and today, USD could trade between 159.65 and 160.15."

"1-3 WEEKS VIEW: We revised our view from positive to neutral yesterday (04 Jun, spot at 159.90). We stated that “upward momentum has largely faded,” and we expected USD “to range-trade, albeit with a firm underlying tone, likely between 159.20 and 160.30.” Our view remains unchanged."

"1-3 MONTHS VIEW: Despite lacklustre momentum, there is scope for USD/JPY to test the top of the rising wedge near 161.15."

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