USD/JPY

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann see USD/JPY confined to a narrow intraday band between 157.90 and 158.50 as recent moves remain range-bound. Over one to three weeks they expect a slightly tighter 157.70–158.80 corridor to contain price action. Their 1–3 month outlook, however, highlights a rapid build-up in downward momentum, suggesting further weakness, though it is unclear if the January low at 152.08 will be tested.

• Falling U.S. Treasury yields narrowed the rate differential, pressuring the U.S. Dollar. • Hawkish Bank of Japan signals regarding inflation boosted expectations for rate hikes. • Intervention risks and domestic bond yields helped strengthen the Japanese Yen.

The USD/JPY pair declines to a one-week low during the Asian session on Thursday, currently trading around the 157.70 region, closer to the lower boundary of a range held since the beginning of this month amid a broadly weaker US Dollar (USD).

The USD/JPY pair holds steady above the 158.00 mark during the Asian session on Thursday, extending its consolidative price action witnessed since the beginning of this month amid a combination of diverging forces.

The Bank of Japan (BoJ) has raised its rate twice this year, to 1.25% in September, with core inflation below its 2% target in each of the seven months to August. USD/JPY trades near 158.00 and has held between 157.50 and 159.00 for 12 sessions.

UOB strategists Quek Ser Leang and Lee Sue Ann note that USD/JPY slipped modestly as the Japanese Yen (JPY) strengthened, with intraday price action confined to a narrow band. They see the pair locked in a short-term range between nearby support and resistance, while the 1–3 month view warns that rapid downward momentum could drive further weakness, though reaching the January low remains uncertain.