UOB strategists Quek Ser Leang and Lee Sue Ann highlight that USD/JPY briefly rose to 158.50 before reversing to 157.83, closing almost unchanged at 158.06. Short-term bias has shifted to the downside toward 157.40, though a clean break lower is uncertain. Over the next one to three weeks, they expects the pair to trade sideways in a 156.35–158.70 band, with longer-term charts still flagging downside risk.
Dollar Yen pressured but rangebound
“24-HOUR VIEW: When USD was at 158.30 yesterday, we highlighted that “the bias for USD is on the upside.” However, we pointed out that it “does not appear to have sufficient momentum to reach 158.70.” We added, “to sustain the upside bias, USD must hold above 157.90, with minor
support at 158.10.” USD then rose to 158.50 before dropping sharply to 157.83. USD closed largely unchanged at 158.06 (-0.03%). Today, the bias is on the downside toward 157.40. It is unclear whether downward momentum can strengthen sufficiently for USD to break clearly below this level. Resistance is at 158.10, followed by 158.30.”
“1-3 WEEKS VIEW: On 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.” Yesterday, USD rose to 158.50 and then retreated. There has
been no shift in directional momentum, and there is no change in our view.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
