USD/JPY Stuck in Tight Range as UOB Sees Limited Upside

Analysts at United Overseas Bank (UOB) note that despite some upward momentum in USD/JPY, the currency pair still hasn't signaled a sustained advance. The price action remains within a tight range between 158.82 and 159.59. While the bias is tilted to the upside for the next 1-3 weeks, the expected range of 158.00-160.20 is likely to contain moves. According to Quek Ser Leang and Lee Sue Ann at UOB, the outlook remains unclear, with USD trading between 158.80 and 159.60.

The analysts predict that over the next few days, USD could edge higher but stay within a 159.00/159.80 range. They emphasize that despite some minor gains, the currency pair's underlying tone still appears firm, maintaining an upward bias. The price action has indeed shown some slight increase in momentum, but it is insufficient to indicate a sustained advance.

The analysts continue to hold their view from last Friday (August 14), when they highlighted that while USD had been unable to make much headway on the upside, the underlying tone still appeared firm, and the bias remained tilted to the upside. The expected range of 158.00-160.20 remains in place.