USD/JPY Consolidation: UOB Sees Rangebound Trade Ahead

The Japanese Yen (JPY) remains vulnerable against the US Dollar (USD), according to UOB's analysts Quek Ser Leang and Lee Sue Ann. They observe that USD/JPY is consolidating near 159.25 after Monday's sharp rise, with intraday trade expected between 158.95 and 159.60.

Although momentum for the USD is strong, deeply overbought conditions limit its upside beyond 159.60. The analysts forecast that the bias remains tilted to the upside within a broader 157.00-160.20 range for the next 1-3 weeks, with medium-term gains contingent on holding above the 21-day Exponential Moving Average (EMA).