Yen Shows Upside Risk While Trapped in Range Against USD

The Japanese Yen has shown upside risk while trading in a range against the US Dollar. According to UOB's Quek Ser Leang and Lee Sue Ann, the USD/JPY pair traded between 157.27 and 157.87, closing at 157.74 with flat intraday momentum indicators. The duo expects the pair to remain within a 157.30-158.20 band in the near term.

However, they still see downside risk towards 155.00 and 154.10 as long as strong resistance at 160.00 is not breached. This view remains valid despite some downward momentum slowing down recently. The pair has been stuck between 157.27 and 157.87 for a while, with momentum indicators remaining flat.

UOB's analysts noted that the USD could trade within a range of 157.30 to 158.20, echoing their previous update from Monday when they highlighted that the risk for the USD remains firmly on the downside.