USD/JPY now sees the likelihood of a decline to the 133.00 region somewhat dwindled, noted UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
Key Quotes
24-Hour View: “Our expectations for a ‘broadening rebound in the USD’ did not materialize as it traded between 134.62 and 135.29 before closing slightly higher at 135.08 (+0.19%). Price movements appear to be consolidating and we expect the USD to trade sideways in the 134.55/135.55 range today.”
Next 1-3 Weeks: “After the USD dropped to a low of 133.49, we highlighted last Friday (May 05, spot at 134.05) that ‘while the USD may continue to decline, short-term terms are severely oversold and that remains to be seen. If the USD has enough momentum to break the tight support level near 133.00’. The USD has rebounded over the past few days and could not move further to the downside. Chances of USD weakening further to 133.00 have been reduced. However, only a breach of 135.85 (the ‘strong resistance’ level was at 136.05 yesterday) would suggest that USD weakness has stabilised.”
