The probability that USD/JPY could slip back to the 133.00 region appears not favoured for the time being, comment Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.
Key Quotes
24-Hour View: “We noted yesterday that ‘price movements appear to be consolidating’ and we expected the USD to ‘trade sideways in the 134.55/135.55 range’. USD traded sideways as expected in a narrow range of 134.71/135.35. Further sideways trading looks likely, expected to be between 134.70 and 135.55.
Next 1-3 weeks: “Our update from yesterday (May 09, spot at 135.10) still stands. As highlighted, after dropping to a low of 133.49 last Friday, the USD was unable to move further to the downside. Chances of USD weakening further to 133.00 have been reduced. However, only a breach of 135.85 (no change to the ‘strong resistance’ level from yesterday) would suggest that USD weakness has stabilised.”
