Range-Bound Trading Expected for Japanese Yen Against US Dollar

UOB's latest FX strategy note has maintained its range-bound trading outlook for the Japanese yen against the US dollar, predicting that the USD/JPY pair will stay within a 155.00-158.50 band in the near term.

This forecast is based on the balance of opposing forces between the Bank of Japan's gradual policy normalization and the Federal Reserve's steady interest rate stance.

The yen has shown occasional strength, but persistent yield differentials between US and Japanese government bonds continue to cap its upside.