Analysts expect the pair to trade between 156.60 and 159.60 in coming weeks as momentum fades.
United Overseas Bank analysts forecast USD/JPY will remain range-bound with a slight downward bias, citing fading momentum after recent swings between 158.33 and 159.13. Intraday trading is expected to stay within 158.55–159.30, lacking fresh catalysts for a breakout.
The pair has struggled to sustain momentum, with last week’s rebound from 158.00 failing to hold above 159.00. Analysts previously noted the rebound appeared overdone, though USD closed little changed at 158.93 after a brief dip to 158.33.
Over the next 1-3 weeks, the outlook remains slightly negative, with USD/JPY seen edging lower but contained within a broader 156.60–159.60 range. The bank maintains this view as downward pressure builds but lacks strength for a sustained decline.