USD/JPY COULD NOW NAVIGATE WITHIN 131.30-135.60 – UOB

According to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, USD/JPY is now seen side-lined with the 131.30-135.60 range in the next few weeks.

KEY QUOTES

24-hour view: “We highlighted yesterday that ‘further USD weakness would not be surprising but it is left to be seen if 130.00 would come into the picture today’. USD subsequently dropped to 130.39 before staging a dramatic turnaround as it rocketed to 133.18. USD extended its advance during early Asian hours and could rise further. In view of the overbought conditions, the resistance at 134.60 is unlikely to come under threat (there is another resistance at 134.00). Support is at 133.00 followed by 132.40.”

Next 1-3 weeks: “The USD weakness that started late last week came to a sudden end as it blew past our ‘strong resistance’ level at 132.90 yesterday. The current price actions are likely the early stages of a broad consolidation phase and USD is expected to trade between 131.30 and 135.60 for now.”