USD/JPY: Further advance likely above 136.90 – UOB

According to Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group, USD/JPY could see its gains accelerated while above the 136.90 level.

Key Quotes

24-hour view: “Yesterday, we expected USD to trade sideways between 135.70 and 136.90. However, USD dropped to 135.24 before rebounding quickly to end the day little changed at 136.16 (-0.03%). The price actions offer not many clues and we expect USD to trade in a range today, likely between 135.40 and 136.60.”

Next 1-3 weeks: “Our update from yesterday (01 Mar, spot at 136.35) is still valid. As highlighted, USD must break and hold above 136.90 in the next 1-2 days or the chances of a move to 137.90 will rapidly diminish. Conversely, a break of the ‘strong support’ at 135.00 (no change in level) would indicate that the USD strength from two weeks ago has come to an end.”