Japanese Yen: Choppy trade inside defined range – UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that USD/JPY has been volatile around 157.86, with swings between 157.51 and 158.36 failing to establish a clear trend. For the coming sessions, the pair is expected to trade within 157.50–158.50 intraday, while the 1–3 week view favours consolidation in a narrower 157.00–158.70 band against a backdrop of longer-term downside momentum.
Dollar-Yen volatility but no clear direction
"24-HOUR VIEW: When USD was at 157.90 yesterday, we highlighted that “the bias is on the downside toward 157.40.” However, we pointed out that “it is unclear whether downward momentum can strengthen sufficiently for USD to break clearly below this level.” The subsequent price action did not unfold as expected. USD declined to 157.58, rebounded to 158.36, then fell back to 157.51 before recovering again to close at 157.86 (-0.13%). The outlook for today is unclear after the choppy price action. Today, USD could trade in a range of 157.50/158.50."
"1-3 WEEKS VIEW: In our most recent narrative from Monday (05 Oct, spot at 157.65), we highlighted that rather than continuing to pull back within the previously expected 156.00/158.70 range, USD “is likely to trade in a range between 156.35 and 158.70.” We continue to expect USD to trade in a range, but a narrower 157.00/158.70 range is likely to contain price movements for now."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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