The USD/JPY currency pair traded within a broad range below 158.00 yen following a disappointing US Nonfarm Payrolls report, with limited upward momentum seen on Friday’s bounce from sub-157.00 levels, according to FX Street. This weak data has contributed to the pair's struggle to break above recent resistance.
United Overseas Bank (UOB) reported that USD/JPY fluctuated between 156.94 and 158.21 yen, closing at 157.83 yen. Intraday trading is expected to remain confined between 157.10 and 158.10 yen. Over the next one to three weeks, UOB anticipates a broad consolidation in the 156.35 to 158.70 yen range, rather than significant declines.
Looking further ahead, UOB cautioned that rapid downside momentum could emerge over the next one to three months, potentially pushing the pair toward January’s low of 152.08 yen. For Japanese market participants, this consolidation phase in USD/JPY reflects ongoing uncertainties in US economic data and its impact on currency flows.