USDJPY faces further range bound trading in the short term – UOB

USDJPY is expected to remain within the consolidative 138.50-142.50 range in the next weeks, comment Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “We expected USD to ‘trade within a range of 138.90/140.20’ yesterday. USD subsequently dropped to 138.86 before staging a surprisingly sharp advance to 140.74. The rapid rise appears to be running ahead of itself and USD is unlikely to advance much further. For today, USD is more likely to trade between 139.50 and 140.80.”

Next 1-3 weeks: “After USD dropped to 137.67 and rebounded, we highlighted on Wednesday (16 Nov, spot at 139.35) that further USD weakness is not ruled out, but the solid support at 137.60 may not come into view so soon, if at all. Yesterday, USD rebounded strongly to a high of 140.74. While our ‘strong resistance’ level at 140.80 is not breached, downward momentum has more or less dissipated. USD appears to have moved into a consolidation phase and is likely to trade within a range of 138.50/142.50 for the time being.”