The US Dollar (USD) is likely to trade between 157.90 and 158.80 in the short term. For a broader view, it seems to be stabilizing within the range of 157.10 to 159.10, according to FX analysts at UOB Group. Recently, the USD decreased to 157.73, then bounced back to 158.53, closing at 158.25, which is a slight increase of 0.06%. Despite this upward trend, experts predict it will stay within the higher range of 157.90 to 158.80.

Market Trends and Predictions

In the coming weeks, expectations remain similar, with the USD likely continuing its consolidation phase. Analysts predict a range between 157.10 and 159.10. This outlook is based on insights from both commercial and freelance analysts to offer a complete view of market trends. The dollar-yen pair is currently in a consolidation phase, expected to remain between 157.10 and 159.10 for the next few weeks. The strong upward momentum has slowed, and there are no immediate economic events likely to significantly influence the pair’s direction. This suggests a period of stability is more likely than a major breakout. For derivative traders, this hints at strategies that take advantage of the quiet volatility. One approach could be selling out-of-the-money options on both sides to earn premiums, betting that the currency won’t break below 157.10 or above 159.10. The aim is to profit from time decay as long as the pair stays within this expected range through February.

Calm Market Outlook

This perspective is backed by recent data showing that one-month implied volatility for USD/JPY has decreased to 9.2%, down from the peaks seen in late 2025. This drop in expected volatility corresponds with steady policy signals from both the Federal Reserve and the Bank of Japan. The market is anticipating a phase of calm after the significant weakening of the yen observed last year. A similar trend of consolidation happened in the fourth quarter of 2025 when the pair hovered just below the 155.00 mark for nearly two months. This quiet phase featured low volatility and stable trading before end-of-year movements triggered the next rise. This recent history suggests that the current trading range may hold for some time. Create your live VT Markets account and start trading now.

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