USD/JPY: The pair is expected to trade with an upward bias – UOB Group

US Dollar (USD) is expected to trade in a range between 157.60 and 158.55. In the longer run, USD is expected to trade with an upward bias; any advance is expected to face significant resistance at 159.00, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

USD/JPY expected to face significant resistance at 159.00

24-HOUR VIEW: “Two days ago, we expected USD to ‘test 158.50.’ USD subsequently rose to 158.54. Yesterday, when USD was at 158.25, we highlighted that ‘despite slowing upward momentum, there is room for USD to 158.65 before a pullback can be expected.’ However, instead of rising, USD traded in a range between 157.56 and 158.43. The current price action is likely part of a range trading phase. Today, we expect USD to trade between 157.60 and 158.55.”

1-3 WEEKS VIEW: “There is not much to add to our update from Tuesday (07 Jan, spot at 158.15). As highlighted, ‘upward momentum is building, and we expect USD to trade with an upward bias.’ We also highlighted that, ‘any advance is expected to face significant resistance at 159.00.’ We continue to hold the same view, provided that 157.20 (no change in ‘strong support level) is not breached.”