Yen Under Pressure, USD/JPY Range-Bound

The Japanese Yen has been under pressure recently, but according to UOB's Quek Ser Leang and Lee Sue Ann, losses are likely limited within a specific range. The USD/JPY pair has extended its rebound to around 155.08, with modest upward momentum suggesting scope for a test above 155.50.

The analysts see the pair edging higher over the next 1-3 weeks but remaining confined to a broad 153.30-156.30 range, with support at 154.40. They note that the yen under pressure but losses are seen as limited.

Looking at the short-term view, USD rose to a high of 154.99 two days ago and has been making upward momentum gains since then. While the analysts expect USD to rise above 155.00 today, they believe it's unlikely to reach 155.50 or even more distant cap at 156.30.