UOB analysts forecast a bullish intraday trajectory for USD/JPY, citing wide US-Japan yield gaps as the primary catalyst for the pair to test the 158.80 level.
UOB analysts Quek Ser Leang and Lee Sue Ann highlight that the USD/JPY pair is maintaining an upward trajectory driven by the persistent and significant yield differential between the United States and Japan. This interest rate disparity continues to exert downward pressure on the Japanese Yen, supporting the bank's outlook for a continued grind higher in the pair.
UOB expects the pair to trade within the 158.20 to 158.80 range.
The primary driver is the wide yield differential between the US and Japan, which weighs on the JPY.
United Overseas Bank analysts project the USD/JPY pair will continue its upward trend, driven by persistent yield differentials between the US and Japan. The pair is expected to trade within an intraday range of 158.20 to 158.80 as the Yen remains under selling pressure.
The primary driver is the wide yield differential between US and Japanese government bonds, which continues to exert downward pressure on the Japanese Yen.