United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/JPY held in a narrow band around 159.35, with a slight uptick in upward momentum. They expect this to translate into trading between 159.15 and 159.65 rather than a sustained advance. Over the coming weeks, they maintain a neutral stance, looking for range-bound price action between 157.90 and 159.80.

Dollar-Yen seen confined to broad band

“24-HOUR VIEW: Yesterday, USD traded within a range of 159.10/159.52, closing little changed at 159.39 (+0.06%). Although there has been a slight increase in upward momentum, this is likely to lead to a higher range of 159.15/159.65 rather than a continued advance.”

“1-3 WEEKS VIEW: Our most recent narrative was from Tuesday (25 Aug, spot at 159.15), when we highlighted that USD “is likely to trade in a range between 157.90 and 159.80.” Although USD traded in a quiet manner over the past few days, we continue to hold the same view for now.”