USD/JPY clings to the range bound theme near term – UOB

In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, USD/JPY is still predicted to maintain the 141.40-144.70 range in the next weeks.

Key Quotes

24-hour view: “We highlighted yesterday that ‘the bias for USD today is tilted to the downside’ but we were of the view that ‘any weakness is likely limited to a test of 142.20’. Our expectations did not materialize as USD traded within a range of 142.63/143.64. The underlying tone still appears to be on the soft side and we continue to see downside bias in USD. That said, any weakness is unlikely to break 142.20 (there is another support at 142.50). Resistance can be found at 143.35 followed by 143.70.”

Next 1-3 weeks: “Our latest narrative from last Thursday (15 Sep, spot at 143.10) where USD is likely to trade between 141.00 and 145.00 for a period of time. USD traded in a relatively quiet manner the past few days and we expect USD to trade sideways, albeit likely within a narrower range of 141.40/144.70. Looking ahead, as long as there is no clear break of 141.40, USD could attempt to move towards 145.00 at a later stage.”