USD/JPY: Downside pressure appears mitigated – UOB

The selling bias around USD/JPY appears to be losing momentum, according UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: We expected USD to consolidate in a range of 146.80/147.65 yesterday. In line with our view, USD consolidated, albeit in a narrower range than expected (147.00/147.56). USD closed little changed in NY (147.47, +0.01%), and further consolidation appears likely. Expected range for today, 146.95/147.65. 

Next 1-3 weeks: Our update from yesterday (14 Sep, spot at 147.30) is still valid. As highlighted, the recent mild downward pressure is beginning to ease, and the odds of USD pulling back further have diminished. However, only a clear break of 147.80 (no change in ‘strong resistance’ level) would invalidate our view that USD could pullback further.