USD/JPY Consolidates Within Wide Range Amid Mixed Momentum

United Overseas Bank (UOB) strategist Quek Ser Leang noted that the USD/JPY pair has been trading within a broad range, fluctuating between 156.94 and 158.21 before closing at 157.83. Intraday movements are expected to remain within 157.10-158.10. Over the next 1-3 weeks, Quek anticipates a consolidation phase between 156.35 and 158.70, rather than a deeper pullback.

Looking at the broader picture, the USD/JPY pair rose to 158.45 last Thursday before closing 0.43% higher at 158.07. Despite an early Asian session indication that the upside bias had eased, the pair rebounded from an intraday low of 156.94 to close at 157.83. This price action offers no fresh clues, suggesting a range-bound trading pattern between 157.10 and 158.10.

In the 1-3 week view, UOB had previously highlighted that the USD could pull back further but stay within a 156.00/158.70 range. While the pair briefly dipped to 156.35, it has largely remained within this range. Moving forward, UOB expects the USD/JPY to trade within this broad consolidation range rather than experiencing deeper declines.

However, on a 1-3 month horizon, UOB maintains a cautious outlook, noting rapid downside momentum that could drive further weakness toward the January low at 152.08. This longer-term perspective contrasts with the short-term consolidation view, highlighting the potential for significant volatility in the coming months.