The outlook for USD/JPY remains mixed, with the US Dollar likely to fluctuate 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
In the short term, USD/JPY recently surged to a high of 152.17 two days ago. On October 22, when the pair was around 151.75, UOB analysts noted that although the sharp rally seemed overextended, there was still room for the pair to test 152.25 before facing increased risk of a pullback. However, the major resistance level at 153.00 was not expected to be reached.
That forecast did not fully materialize, as the pair traded between 151.47 and 152.04, closing nearly flat at 151.97 (+0.03%). Today, there is still potential for the USD to push slightly higher, but with no strong upward momentum, any gains are expected to remain within a higher trading range of 151.70 to 152.40. The key resistance at 153.00 is still unlikely to be tested in the near term.
Medium-Term View
The analysts reaffirm their previous medium-term view from October 22, emphasizing that recent sharp but brief price swings have created a mixed outlook. For now, USD/JPY is expected to continue trading within the 150.00 to 153.00 range over the next one to three weeks.
