Yen Expected to Trade in Narrow 157-159 Range

United Overseas Bank (UOB) Group's foreign exchange strategists predict that the Japanese yen will trade within a narrow range of 157.90 to 159.80 against the US dollar in the near term.

This forecast reflects a market where both upside and downside movements are limited by prevailing economic conditions and central bank policies, according to UOB's FX analysis.

The identified range comes amid ongoing expectations regarding the Bank of Japan's monetary policy stance and the Federal Reserve's interest rate trajectory, with traders closely watching for any shifts in the interest rate differential between the US and Japan.