USD/JPY is now seen within 142.90-145.00 range in the next few weeks, according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
Key Quotes
24-hour view: While we expected USD to weaken yesterday, we were of the view that “any decline is likely to face strong support at 143.90.” The anticipated support did not materialize as USD plummeted to 143.54, bounced to 144.69 and then closed at 144.06. After the choppy price actions, the outlook for USD is mixed. Today, USD could continue to trade in a choppy manner, likely between 143.40 and 144.50.
Next 1-3 Weeks: We hold a positive USD view since the middle of last month. In our latest report from Wednesday (July 05, spot at 144.50), we noted that “USD strength is struggling to maintain its momentum, and chances of an extension to 145.50 appear slim”. Yesterday (July 06), the USD broke below our ‘strong support’ level at 143.90. A breach of ‘strong support’ indicates that the 3-week USD strength is over. From here, we expect the USD to trade in a range, perhaps between 142.90 and 145.00.
