The outlook for USD/JPY remains mixed, with the currency pair likely to trade within the 150.00 to 153.00 range for the time being, according to UOB Group’s FX analysts Quek Ser Leang and Peter Chia.
Recent Volatility Creates Uncertainty
The pair experienced sharp fluctuations recently, leading to an unclear short-term direction.
24-Hour View:
Two days ago, USD/JPY surged to a high of 152.17. Yesterday, when the pair was at 151.75, analysts noted: “The sharp rise looks overstretched, but there is still room for USD to test 152.25 before the risk of a pullback grows. We do not expect the major resistance near 153.00 to be reached.” However, the pair traded between 151.47 and 152.04 and closed nearly flat at 151.97 (+0.03%). Today, USD/JPY may edge slightly higher, but with little upward momentum, any gains will likely be limited within a range of 151.70 to 152.40. The major resistance at 153.00 is still not expected to come into play soon.
1 to 3 Weeks Outlook:
The previous update from October 22 remains valid. Due to recent volatile but short-lived swings, the outlook is mixed, and USD/JPY is expected to continue trading between 150.00 and 153.00 in the coming weeks.