United Overseas Bank currency analysts Quek Ser Leang and Lee Sue Ann report the Japanese yen is trading in a narrow range against the US dollar, with USD/JPY moving between 161.62 and 162.47 before settling at 162.23. The pair failed to break through resistance at 162.70, signaling potential exhaustion in dollar strength at current levels.
The Singapore-based bank expects intraday trading to remain confined between 161.75 and 162.50, indicating continued consolidation without clear directional conviction. This follows recent volatility as markets weigh US economic data against potential Japanese government intervention to support the weakening yen.
Traders should note the yen remains near multi-decade lows, with Japanese authorities previously warning against excessive currency moves. The narrow trading band suggests markets are cautious about pushing higher ahead of key economic releases or policy signals from either the Federal Reserve or Bank of Japan.
FXnCO Insight
Range-bound USD/JPY trading between 161.75 and 162.50 offers short-term scalping opportunities but requires tight stops given intervention risks at these elevated levels.
Source: FXStreet