Japanese Yen: Bearish bias within 158.00–160.20 band against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann judge USD/JPY price action as inconclusive intraday, with trading expected between 159.00 and 159.70 after a tight 159.01–159.56 range. Over 1–3 weeks, they keep an upside bias, seeing the pair confined within a narrower 158.00–160.20 range, while longer-term charts suggest the advance can extend as long as it holds above the 21-day EMA near 161.00.

Dollar-Yen retains firm underlying tone

"24-HOUR VIEW: Subsequent to USD price action on Wednesday, we indicated yesterday that “we are not able to derive much from the price action.” We also indicated that USD “could trade between 158.70 and 159.70.” However, USD traded within a relatively tight range of 159.01/159.56, closing largely unchanged at 159.48 (+0.04%). We are still unable to derive much from the price action. Today, USD could trade between 159.00 and 159.70."

"1-3 WEEKS VIEW: Our most recent narrative was from Tuesday (11 Aug, spot at 159.20), when we highlighted that “while the bias for USD is tilted to the upside, any advance is likely part of a higher range of 157.00/160.20.” While USD has been unable to make much headway on the upside, the underlying tone still appears to be firm, and the bias remains tilted to the upside. That said, a narrower range of 158.00/160.20 is likely enough to contain the price movements for now."