USD/JPY faces extra consolidation near term – UOB

Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group see USD/JPY trading within the 138.00-141.00 range in the short-term horizon.

Key Quotes

24-hour view: Our view for USD to trade sideways between 138.80 and 140.05 yesterday turned out to be incorrect. Instead of trading sideways, USD soared to 140.49, and then pulled back to end the day at 140.07 (+0.29%). Despite the relatively strong advance, upward momentum has not improved much. However, there is room for USD to edge above 140.50 today. The major resistance at 141.00 is unlikely to come under threat. Support is at 139.50, followed by 139.00.  

Next 1-3 weeks: There is not much to add to our update from yesterday (19 Jul, spot at 139.55). As highlighted, the USD weakness that started from early last week has stabilized. From here, we expect USD to trade in a range, likely between 138.00 and 141.00.