USD/JPY clings to the consolidative theme near term – UOB

According to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, USD/JPY is forecast to keep the 143.50-145.60 range in the next few weeks.

Key Quotes

24-hour view: “We highlighted last Friday that USD “is likely to trade sideways between 144.00 and 145.00”. Our view for sideway-trading was not wrong even though USD traded within a narrower range than expected (144.18/144.82). Further sideway-trading would not be surprising but in view of the slightly firmed underlying tone, USD is likely to trade within a higher range of 144.30/145.20.”

Next 1-3 weeks: “Our latest narrative was from last Tuesday (27 Sep, spot at 144.30) where we highlighted that upward momentum is beginning to build but USD has to close above 145.00 before a sustained advance is likely. USD has been trading sideways the past few days and the build-up in momentum has faded. The current movement is likely part of a consolidation phase and USD is likely to trade between 143.50 and 145.60.”