USD/JPY NOW SEEMS TO HAVE MOVED INTO A CONSOLIDATION PHASE

USD/JPY is expected to navigate between 130.50 and 134.60 in the next weeks comment Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

24-hour view: “We did not anticipate the strong rebound in USD to a high of 132.62 yesterday (we were expecting USD to test the major support at 130.45). While there is room for USD to rebound further, any advance is unlikely to break 133.50. Support is at 132.00, followed by 131.50.”

Next 1-3 weeks: “We have expected USD to weaken since early last week. After USD dropped to 130.52, we highlighted yesterday (21 Mar, spot at 131.20) that a break of 130.45 would not be surprising. However, USD rebounded sharply and took out our ‘strong resistance’ level at 132.60 (high of 132.62). The breach of the ‘strong resistance’ level indicates that the more than weeklong USD weakness has ended. From here, USD is likely to trade in broad range, expected to be between 130.50 and 134.60.”