The USD/JPY is expected to move between 151.85 and 152.75, according to analysts from UOB Group. Over the long term, recent price trends indicate a range-trading phase between 149.50 and 153.00. In the short term, after a quick drop to 151.15, the USD has opened strong. Analysts expect a trading range of 151.30 to 152.70, supported by recent movements from 151.70 to 152.44.

Medium Term Analysis

In the next one to three weeks, the outlook is neutral, likely staying between 151.85 and 153.00. This aligns with indications of a broader trading range of 149.50 to 153.00. USD/JPY movements reflect a larger economic picture, with many global currencies reacting to geopolitical tensions. Pairs like EUR/USD and GBP/USD are experiencing volatility due to these developments. Please note that the text contains legal disclaimers about investment risks. It emphasizes that the information is not direct investment advice, and all risks and costs are the investor’s responsibility.

Investment Strategy

The USD/JPY pair seems to be entering a consolidation phase, reducing the likelihood of strong directional moves. The expected trading range for the coming weeks is between 149.50 and 153.00, suggesting the pair will fluctuate within these limits without a major breakout. Considering this stability, strategies that benefit from low volatility and time passage may be effective. Selling options to collect premiums, like through an iron condor or short strangle, can be a good approach. These strategies can generate income if the currency pair stays within a set price range. This perspective is backed by recent economic data from October 2025. The latest U.S. jobs report showed a non-farm payroll number of 175,000, slightly below expectations, easing concerns about further aggressive actions from the Federal Reserve. Meanwhile, Japanese inflation remains low at 1.9%, giving the Bank of Japan little reason to change its supportive policy. We remember that the 152.00 level acted as a strong ceiling in late 2023 and through 2024, leading to interventions from Japanese authorities to aid the yen. The market remembers the sharp declines after attempts to breach this level, suggesting that the upper limit of the 153.00 range is likely to hold. Thus, a practical approach would be to sell out-of-the-money call options with strike prices above 153.00 and put options with strikes below 149.50. By choosing expirations in late November or early December 2025, we can take advantage of time decay, assuming that the pair remains within the expected range. The main risk to this strategy would be unexpected policy changes from either central bank. Create your live VT Markets account and start trading now.

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