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

United Overseas Bank’s (UOB) Quek Ser Leang observes that USD/JPY price action remains choppy, with the pair closing around 159.30 after a dip to 158.58. Intraday direction is unclear, with trading expected between 158.80 and 159.60. Over 1–3 weeks, the bias stays tilted to the upside, but gains are seen constrained within a 158.00–160.20 range.

USD/JPY stays rangebound around 159.00

"24-HOUR VIEW: After USD closed largely unchanged at 159.48 (+0.04%) last Thursday, we indicated the following: “We are still unable to derive much from the price action. Today, USD could trade between 159.00 and 159.70.” USD subsequently dropped to a low of 158.58 before snapping back up to close at 159.30 (-0.11%). The outlook remains unclear for now. Today, USD could trade between 158.80 and 159.60."

"1-3 WEEKS VIEW: Last Tuesday (11 Aug, spot at 159.20), 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.” On Friday (14 Aug, spot at 159.40), we highlighted the following: “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.” There is no change in our view."