JPY: Range Trading Persists Against USD - UOB

USD/JPY is currently trading near 158.02, maintaining an overall range-bound pattern. UOB analysts Ho Zi Hao and Li Xiu En issued their latest view, stating that the pair lacks clear directional breakout momentum in the near term and is expected to continue oscillating within a familiar range.

**Short-Term Tone Slightly Firmer but Limited**

The analysts noted that after USD/JPY previously traded between 157.74 and 158.42, the underlying tone has firmed somewhat. On a 24-hour view, they expect the pair to fluctuate within a 157.80 to 158.50 range. This assessment aligns with intraday momentum indicators holding steady and the market lacking strong catalysts. In the prior trading day, the pair traded quietly within a narrower 157.27 to 157.87 range, closing marginally up 0.01% at 157.74.

**1-3 Week Neutral Range View Maintained**

Looking ahead 1-3 weeks, UOB maintains its broader range expectation of 157.50 to 159.05. The analysts emphasized that as long as the strong resistance level at 160.00 is not breached, downside risks remain pointed toward 155.00 and 154.10. Current price action remains confined within a relatively narrow channel, with neither bulls nor bears gaining a decisive advantage.

**Medium-to-Long-Term Downside Momentum Building**

On a longer 1-3 month horizon, UOB noted that downside momentum is building, suggesting room for further USD/JPY weakness. However, uncertainty remains over whether the pair can reach the January low of 152.08. Market reports indicate that the yen may gain some support as the market reprices the Fed's policy path, but catalysts for breaking out of the current range in the near term have yet to emerge.