USD/JPY is now seen within 149.50-151.65 – UOB

Further consolidation appears in store for USD/JPY in the next few weeks, argue Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: Yesterday, we held the view that USD could rebound further, but it is unlikely to break the major resistance at 151.65. Instead of rebounding further, USD dropped sharply to a low of 150.27 before recovering to end the day at 150.71 (-0.42%). While the decline lacks momentum, as long as USD stays below 151.30 (minor resistance is at 151.00), it could weaken but is unlikely to break clearly below 150.10. 

Next 1-3 weeks: Our update from Wednesday (15 Nov, spot at 150.55) is still valid. As highlighted, the recent buildup in upward pressure has faded. From here, USD is likely to trade in a range of 149.50/151.65.