The US Dollar (USD) is expected to trade between 153.10 and 155.00 against the Japanese Yen (JPY), according to analysts at UOB Group. In the past 24 hours, the USD hit a high of 154.49, a low of 153.64, and closed slightly up at 154.15 (+0.01%). This indicates a phase of sideways trading. Today, analysts predict the USD will range between 153.65 and 154.50. Over the next one to three weeks, the USD is expected to stay within the 153.10 to 155.00 range. This information comes from market observations by the FXStreet Insights Team, which includes both internal and external analysts.

Market Consolidation Expected

Given the current stability, the USD/JPY pair appears to be entering a consolidation phase. The market is likely to stay within 153.10 and 155.00 during the next few weeks, indicating a period of sideways trading with limited direction. Recent economic data supports this view. US Core PCE inflation, reported for October 2025, remained steady at 2.8%, giving the Federal Reserve little reason to change its patient approach. Likewise, Japan’s inflation is around 2.5%, suggesting the Bank of Japan is unlikely to make any sudden moves that would significantly strengthen the yen. For traders using derivatives, this environment favors strategies aimed at profit from low volatility. Selling options, particularly through strategies like an iron condor, with short strikes just outside the 153.10 and 155.00 levels, may be a strong approach. This strategy benefits as long as the pair stays within the expected range.

Psychological Resistance and Historical Precedents

It’s important to consider the sharp interventions by the Ministry of Finance in 2024 when the dollar rose significantly. The 155.00 level acts as a key psychological barrier, and the risk of official actions will likely limit strong upward movement. This historical context underscores the credibility of the upper boundary of this range. Implied volatility for the USD/JPY has also decreased, with one-month options trading near 6.5%, much lower than earlier this year. This makes selling volatility more appealing than buying, as options are relatively inexpensive. Traders should look to collect premiums rather than pay for directional bets that rely on breakout scenarios. While the range seems stable, a sudden shift in US Treasury yields could alter the outlook. A rapid increase in the US 10-year yield could test the 155.00 resistance. Therefore, maintaining disciplined risk management is essential in case the market breaks away from this anticipated pattern. Create your live VT Markets account and start trading now.

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