Japanese Yen: Slightly bullish within broad range against US Dollar – UOB

United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann suggest the Japanese Yen maintains a slightly bullish stance within a narrow trading range against the US Dollar. Price fluctuations between 158.33 and 159.13 indicate limited room for intraday trading, which will likely stay between 158.55 and 159.30. For the upcoming weeks, the analysts retain a slight bearish outlook, anticipating a gradual decline of the pair but keeping it within a broader 156.60–159.60 range as momentum wanes.

On Thursday, the US Dollar experienced a dip to 158.00 before rebounding strongly to close at 159.05, representing a 0.56% increase. However, by Friday, the analysis suggested the rebound was not sustainable, and the US Dollar was more likely to remain in a range between 158.50 and 159.35. The actual price movements deviated from the initial expectations, with USD dropping briefly to 158.33 and then closing at 158.93, a 0.08% decrease.

As of today, USD could potentially trade between 158.55 and 159.30. The analysts revised their view on the USD to slightly negative on Thursday (August 20), when the spot rate was at 158.30. They pointed out that downward momentum was beginning to build but was not strong enough to sustain a significant decline. The analysts also noted that USD could potentially edge lower, yet any decline must remain within the 156.60–159.60 range.

Since then, USD has primarily been trading within this range, and the momentum behind any potential decline has been diminishing. The analysts maintain their current bearish stance for now.