Japanese Yen: Mild upside bias against US Dollar within range - UOB

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann observe that USD/JPY held within 157.67–158.33 on Friday, closing almost unchanged at 157.99. Short-term momentum is tilting lower, with scope to test 157.50, though a decisive break below that level is not expected. Over the next 1–3 weeks, the pair is still seen consolidating in a broad 157.50–159.05 range.

USD/JPY retains a slight downside bias within range

"24-HOUR VIEW: We expected USD to “range-trade between 157.80 and 158.50” last Friday. USD then traded within a range of 157.67/158.33, closing largely unchanged at 157.99 (+0.01%). Despite range-trading and the largely unchanged close, downward momentum appears to be building. Today, we expect USD to edge lower and test 157.50. A break below this level is not ruled out, but based on the prevailing momentum, a clear break below this level is unlikely. Resistance is at 158.10, followed by 158.30."

"1-3 WEEKS VIEW: In our most recent narrative from last Wednesday (14 Oct, spot at 158.35), we highlighted that USD “has likely moved into a range-trading phase between 157.50 and 159.05.” Since then, USD has traded within the range, and there is no change in our view."