USD/JPY: More likely to trade in a range of 144.15/145.25 – UOB Group

Instead of continuing to rise, US Dollar (USD) is more likely to trade in a range of 144.15/145.25 against Japanese Yen (JPY). In the longer run, USD has likely entered a range trading phase, probably between 143.50 and 145.95, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD/JPY has likely entered a range trading phase

24-HOUR VIEW: "Our view for USD to consolidate yesterday was incorrect, as USD spiked to a high of 145.23 during the NY session. The sharp rise appears excessive, and instead of continuing to rise, USD is more likely to trade in a range of 144.15/145.25 today."

1-3 WEEKS VIEW: "We revised our USD view to negative on Monday (01 Jul, spot at 143.80). After USD exceeded our technical target at 142.70 (low has been 142.66), we highlighted two days ago (02 Jul, spot at 143.50) that 'while further declines are not ruled out, USD may consolidate for a couple of days first before heading lower.' Yesterday, USD soared and broke above our ‘strong resistance’ level of 144.60. Downward momentum has faded, and USD has likely entered a range trading phase, probably between 143.50 and 145.95."