United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note a modest pickup in downside momentum in USD/JPY after a volatile session. They expect the pair to trade with a bearish intraday bias toward 157.20, potentially testing major support at 157.00, with resistance at 158.10 and 158.30. Over 1–3 weeks, they still anticipate broad range trading between 157.00 and 159.00.

Yen gains as pair leans lower in range

“24-HOUR VIEW: USD swung between 157.39 and 158.74 two days ago. Yesterday, we stated that “we are not able to derive much from the price action.” We also indicated that USD “could trade between 157.70 and 158.70.” USD subsequently rose to 158.49, fell sharply to 157.52 before closing on a soft note at 157.66 (-0.48%). There has been an increase in downward momentum, albeit not significantly. Today, we expect USD to trade with a downside bias to 157.20 and potentially test the major support at 157.00. Resistance is at 158.10, followed by 158.30.”

“1-3 WEEKS VIEW: We have been expecting USD to range-trade since the middle of last week. Two days ago (04 Nov, spot at 158.25), we indicated that that “we continue to expect range-trading, but we now expect a wider range of 157.00/159.00.” Our view remains unchanged”