Usdjpy To Trade In Tight Range

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Usdjpy To Trade In Tight Range

USD/JPY To Trade Between 149 - 150.70 - UOB

According to analysts from UOB, the USD/JPY pair is expected to trade in a range that starts from 149 and ends at 150.70. This trading range will remain valid for the next couple of weeks and also suggests that the pair will have little upside beyond the 150.00 handle.

In last Friday's session, the USD/JPY pair was expected to trade in a shorter range from 149.90 - 150.70. But the pair ended up touching the 149.45, which is outside the trading range outlined by the UOB. By the end of Friday, the USD/JPY closed near 149.60 with a change of -0.52% for the day.

USD/JPY Faces Limited Downside

Given the USD/JPY performance on Friday, the UOB strategist believes that the downside remains limited. However, the pair will likely touch the 149.35 before making any upside moves.

As for the support, the 149.00 levels remain relevant, but the bears will not test it. On the other hand, the 150.00 resistance may be tested once again with a chance to touch the 150.30. In the next few weeks, the USD strength will increase, and the pair will likely go higher towards 150.50.

However, the bigger picture tells us that the USD/JPY will trade in a 170 pips range. The lower end of the range is 149.00, which is also an important support. On the contrary, the upper range is 150.70, which means 150.00 and 150.50 resistance levels remain relevant.

For the USD/JPY to touch or cross 150.70, the other two resistance levels (150 & 150.50) will need to be conquered first.

One thing that is still not clear about the UOB's forecast is whether they also priced the chances of BoJ intervention or not! Because if we look at the past, any big intervention in the USD/JPY can easily send it down a few hundred pips. In that case, the pair may even cross the lower end of the range (149).

For now, the USD/JPY is trading above the 149.50 and is only 50 pips away from the 150.00 resistance zone.

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