USD/JPY Range-Bound Trading Expected to Continue

Japanese Yen trading against the US Dollar is expected to remain range-bound in the near term, according to analysts at United Overseas Bank (UOB). In their latest analysis, Quek Ser Leang and Lee Sue Ann noted that USD/JPY has been fluctuating within a narrow range of 158.95 and 159.50 over the past day. The pair closed little changed on Monday and yesterday, with prices trading between 158.59 and 159.28.

The analysts pointed out that despite the recent price action appearing to be part of a range-trading phase, the underlying tone suggests that USD is likely to trade in a higher range. They expect this trend to continue today, with prices potentially moving between 158.95 and 159.50.

Looking at a slightly longer horizon, UOB analysts forecast that USD/JPY will remain confined between 157.90 and 159.80 over the next 1-3 weeks. However, if key support holds, further gains may be possible over the 1-3 month view.