United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/JPY’s slight increase in upward momentum after trading between 158.82 and 159.59 still falls short of signaling a sustained advance, keeping intraday price action likely confined to 159.00–159.80. Over the next 1–3 weeks, the bias remains tilted to the upside, with a 158.00–160.20 range expected to contain moves.

Japanese Yen stays under mild pressure

“24-HOUR VIEW: We highlighted yesterday that “the outlook is unclear, and USD could trade between 158.80 and 159.60.” USD subsequently fluctuated between 158.82 and 159.59, closing little changed at 159.43 (+0.08%). The price action has resulted in a slight increase in upward momentum, but it is insufficient to indicate a sustained advance. Today, USD could edge higher, but it is likely to stay within a 159.00/159.80 range.”

“1-3 WEEKS VIEW: We have held the view that “the bias for USD is on the upside” since a week ago. In our most recent narrative from last Friday (14 Aug, spot at 159.40), we highlighted the following: “While USD has been unable to make much headway on the upside, the underlying tone still appears to be firm, and the bias remains tilted to the upside. That said, a narrower range of 158.00/160.20 is likely enough to contain the price movements for now.” We continue to hold the same view.”