USD/JPY points to some range bound trading in the next weeks – UOB

USD/JPY is now expected to navigate within the 139.00-144.50 range in the next weeks, comment FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “USD traded between 141.75 and 143.46, much narrower than our expected range of 140.00/144.00. The underlying has improved somewhat and the bias for today is on the upside. However, a sustained rise above 144.50 is unlikely. Support is at 143.20 but only a breach of 142.80 would indicate the current mild upward pressure has eased.”

Next 1-3 weeks: “Our view from last Friday (23 Sep, spot 142.20) still stands. As highlighted, the recent USD strength has ended and USD could trade choppily between 139.00 and 144.50 for now. Looking ahead, USD has to close above 145.00 before another up leg is likely.”