USD/JPY Trapped in Higher Trading Range: UOB

According to United Overseas Bank's (UOB) analysts Quek Ser Leang and Lee Sue Ann, the USD/JPY currency pair closed little changed at 159.41 after briefly dipping to 158.58 and rebounding to 159.54. This price action suggests that the pair is expected to trade within a narrow range of 158.70 to 159.70 in the intraday market.

Looking ahead to the next 1-3 weeks, UOB's analysts maintain an upside-tilted bias for USD/JPY, but view any advance as part of a broader range of 157.00-160.20 rather than a fresh trend. This means that while they expect the pair to continue moving upward, they do not see it as a significant breakout from its current trading range.

UOB's analysts had previously mentioned on August 11 that USD/JPY could trade between 158.95 and 159.60, but this forecast was not entirely accurate given the recent price action. However, their overall view remains unchanged, and they continue to hold an upside-tilted bias for the pair.