Forex
USD/JPY Range-Bound with Downside Bias Amid Narrowing Yield Gap
The USD/JPY exchange rate has been range-bound between 158.33 and 159.13, with little direction from recent price action, according to UOB.
In their analysis, UOB notes that intraday trade is likely to remain within the bounds of 158.55 and 159.30. The dollar briefly fell to 158.33 in the prior session before closing almost unchanged at 158.93, a -0.08% move after an earlier rebound.
Over a one-to-three-week horizon, UOB maintains a slightly negative bias first flagged on August 20 when spot was 158.30. They expect any decline to stay contained within the broader 156.60 to 159.60 band.