USD/JPY: No changes to the range bound theme – UOB

In the opinion of FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, USD/JPY remains poised to extend the 143.50-145.60 range for the time being.

Key Quotes

24-hour view: “We highlighted yesterday that ‘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’. USD subsequently rose briefly to 145.20 in Asian trade, dropped to 144.14 during early NY hours before rebounding to close at 144.53 (-0.15%). The overall price actions still appear to be part of sideway-trading phase and we expect USD to trade between 144.20 and 145.15 for today.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (03 Oct, spot at 144.70). As highlighted, the recent build-up in momentum has faded. The current movement appears to be part of a consolidation phase and USD is likely to trade between 143.50 and 145.60.”