United Overseas Bank currency analyst Quek Ser Leang issued fresh guidance on the Japanese yen this week, signaling continued weakness against the dollar with a cautious near-term outlook. The bank maintains an upside bias for USD/JPY, forecasting intraday movement potentially testing 162.80, though the critical 163.00 resistance level is expected to hold for now. Over the next one to three weeks, UOB anticipates mixed trading conditions with the pair confined to a range between 160.60 and 163.00.
The assessment comes as traders navigate heightened volatility in yen-denominated pairs amid persistent Bank of Japan policy uncertainty and shifting US rate expectations. The suggested trading band indicates limited conviction for a sustained breakout in either direction, keeping short-term positioning challenging for forex desks.
FXnCO Insight
Traders should prepare for range-bound USD/JPY action between 160.60 and 163.00 over coming weeks, with breakout plays above 163.00 likely premature until clearer directional catalysts emerge.
Source: FXStreet